PERTH (miningweekly.com) – ASX-listed Danakali has completed the sale of its 50% shareholding in the Colluli sulphate of potash project, in Eritrea, to Sichuan Road and Bridge Group.
The company in January struck the $166-million deal under which Sichuan Road and Bridge Group would acquire all of Danakali’s shares in the Colluli Mining Share Company (CMSC) as well as a shareholder loan owned by CMSC to Dankali, for $135-million and $31-million respectively.
On completion of the sale, and following government taxes, Danakali has received a first tranche payment of $105-million, with a second tranche payment of $16-million to be received within the next six months.
Danakali has previously said that following the completion of the transaction, the company would distribute 90% of the net proceeds to shareholders and would continue as a listed company to identify new projects and potential new alternative growth opportunities.