ASX- and LSE-listed Danakali and Africa Finance Corporation have agreed on an extended deadline for Tranche 2 of AFC’s equity funding to Danakali, as a result of market and global conditions, amid Covid-19, which has impacted on the satisfaction of remaining conditions to the funding.
Tranche 2 is now expected to be concluded by November 21.
AFC invested $21.5-million in Danakali in December 2019 as part of the Tranche 1 funding.
Tranche 2 is valued at $28.5-million.
Danakali has used the funding for the development and construction of the Colluli sulphate of potash project, in Eritrea.
The project remains on track for production to start during 2022.