Operational highlights

  • Africa Finance Corp. (AFC) and African Export Import Bank (Afreximbank, together the Mandated Lead Arrangers), and the company executed documentation for the provision of US$200 million in senior debt finance to CMSC (each Mandated Lead Arranger providing US$100 million).
  • AFC and the company executed a Subscription Agreement to make a US$50 million strategic equity investment in Danakali. The Placement is being conducted in two tranches. The first tranche consisted of approximately 53 million new shares issued at AUS$0.60 per share to raise AUS$31.8 million (US$21.5 million) and was completed on 10 December 2019.
  • Niels Wage was appointed CEO based on his relevant industry experience, leadership capabilities and passion for the Colluli potash project and Eritrea.
  • Development work had commenced including the engagement of DRA Global (DRA), CMSC’s EPCM contractor.

Financial highlights

  • Cash position of AUS$33.8 million as at 31 December 2019.

Post-period highlights

  • Following receipt in December 2019 of AFC’s Tranche 1 investment of US$21.5 million (AUS$31.8 million), Danakali is well funded to complete the current activities and close out the balance of the funding.
  • Significant progress on EPCM: Phase 1 completed on time and budget; Phase 2 has commenced.
  • In light of the rapid spread of Covid-19 and its significant impact on global financial markets, the second tranche of AFC’s equity funding will be deferred to allow for the stabilisation of market and global conditions.