viewDanakali Ltd

Credit approval for Colluli power plant

/**/ sup{font-size:80%}sub{font-size:80%}h1{margin-top:12.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:16.0pt;font-family:"Calibri Light","sans-serif";color:#89191C;font-weight:normal;}h2{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:13.0pt;font-family:"Calibri Light","sans-serif";color:#89191C;font-weight:normal;}h3{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:12.0pt;font-family:"Calibri Light","sans-serif";color:#C3731C;font-weight:normal;}h4{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri Light","sans-serif";color:#89191C;font-weight:normal;}h5{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri Light","sans-serif";color:#C3731C;font-weight:normal;}h6{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri Light","sans-serif";color:#888888;font-weight:normal;}p{margin-right:0cm;margin-left:0cm;font-size:12.0pt;font-family:"Times New Roman","serif";}ol{margin-bottom:0cm;}ul{margin-bottom:0cm;}link{ color: #0F0F0F } visited{ color: black } .bi{size:595.0pt 842.0pt;margin:72.0pt 56.35pt 72.0pt 2.0cm;}div.bi{}table.do{width:482.3pt;margin-left:-5.4pt;border-collapse:collapse;border:none}td.dk{width:214.45pt;border:none;border-bottom: solid #632523 1.0pt;padding:0cm 5.4pt 0cm 5.4pt}p.dp{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:28.0pt;font-family:"Calibri Light","sans-serif";color:#89191C;letter-spacing:-.5pt;font-weight:bold;line-height:normal}span.dm{font-size:12.0pt;font-family:"Calibri","sans-serif";color:#595959; font-weight:normal}td.dh{width:246.25pt;border:none;border-bottom: solid #632523 1.0pt;padding:0cm 5.4pt 0cm 5.4pt}p.dq{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:28.0pt;font-family:"Calibri Light","sans-serif";color:#89191C;letter-spacing:-.5pt;font-weight:bold;line-height: normal; text-align: right}span.dj{font-size:12.0pt;font-family:"Calibri","sans-serif"; color:#595959;font-weight:normal}p.dr{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:28.0pt;font-family:"Calibri Light","sans-serif";color:#89191C;letter-spacing:-.5pt;font-weight:bold;line-height:normal} span.df{font-size: 10.5pt;color:#595959;font-weight:normal}p.ds{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;font-weight: bold; line-height: normal; text-align: center}span.de{font-size:24.0pt;font-family:"Calibri Light","sans-serif"; color:#632523;letter-spacing:-.5pt}p.dt{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;line-height:normal}p.du{margin-top:0cm;margin-right:0cm;margin-bottom:0cm;margin-left:36.0pt;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;margin-top:2.0pt;margin-right:0cm;margin-bottom: 2.0pt;margin-left:14.2pt;text-indent:-14.2pt;line-height:normal}span.dc{font-size:11.5pt;font-family:Symbol;color:#632523}span.db{font-size:11.5pt}p.dv{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;margin-top:2.0pt;margin-right:0cm;margin-bottom:2.0pt; margin-left:0cm;line-height:normal}span.cz{font-size:6.0pt}p.dw{margin-top:0cm;margin-right:0cm;margin-bottom:0cm;margin-left:36.0pt;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;margin-left:14.2pt;text-indent:-14.2pt; line-height:normal} span.cx{font-size:11.5pt;font-family:Symbol; color:#632523}p.a,li.a,div.a{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;}p.dx{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;line-height:normal;vertical-align: baseline}table.dy{border-collapse:collapse}tr.cp{height:13.7pt}td.cs{width:240.95pt;padding:0cm 0cm 0cm 0cm; height:13.7pt}h2.ct{margin-top:0cm;line-height:normal}span.dz{color: #632523; font-size: 10.5pt; font-weight: bold}td.cq{width:241.0pt;padding:0cm 0cm 0cm 0cm; height:13.7pt}span.ea{font-size:10.5pt;font-family:"Calibri","sans-serif"; color:#632523} p.eb{margin-top:0cm;margin-right:0cm;margin-bottom:12.0pt;margin-left:0cm;text-align:justify;font-size:12.0pt;font-family:"Times New Roman","serif";color:black;border:none;font-weight:bold;margin-bottom: 0cm; page-break-after: auto; text-align: left}span.co{font-size: 10.5pt;font-family:"Calibri","sans-serif";color:#636363;font-weight:normal}td.cm{width:240.95pt;padding:0cm 0cm 0cm 0cm}td.cl{width:241.0pt;padding:0cm 0cm 0cm 0cm}span.ck{font-size: 10.5pt;font-family:"Calibri","sans-serif";color:#595959;font-weight:normal}p.ec{margin-top:0cm;margin-right:0cm;margin-bottom:12.0pt;margin-left:0cm;text-align:justify;font-size:12.0pt;font-family:"Times New Roman","serif";color:black;border:none;font-weight:bold;border: none; margin-bottom: 0cm; page-break-after: auto; text-align: left}span.cj{font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959; font-weight:normal}span.ed{color:#0F0F0F;color: #632523; font-weight: bold; text-decoration: none}span.ce{font-size:11.0pt;font-family:"Calibri","sans-serif"; color:#595959}br.cf{page-break-before:always} span.cd{font-size:11.0pt}p.ee{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;font-weight: bold; line-height: normal}span.cc{font-size:16.0pt;font-family:"Calibri Light","sans-serif";color:#632423}p.ef{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;line-height:normal;vertical-align:baseline}h2.by{font-weight: bold}span.bz{font-size:12.0pt;line-height:110%;color:#632523}span.bx{color:#595959}span.eg{color:#0F0F0F;color:#595959}p.eh{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;line-height: normal; text-align: center}span.ei{font-size:9.0pt;font-family:"Calibri","sans-serif"; color:#595959} span.ej{font-size:9.0pt;font-family:"Calibri Light","sans-serif"; color:#C3731C}h5.bs{margin-top:0cm;line-height:normal}span.ek{font-size: 9.0pt; font-weight: bold}p.el{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;border:none;line-height:normal}span.br{font-size:9.0pt}p.em{margin:0cm;margin-bottom:.0001pt;line-height:110%;font-size:10.5pt;font-family:"Calibri","sans-serif";color:#595959;border:none;text-indent:.05pt;line-height:normal}span.en{font-size:9.0pt}span.bp{font-size:8.0pt}span.eo{font-size: 8.0pt; font-weight: bold}span.ep{font-size:8.0pt} span.ba{}span.bn{font-size:8.0pt; color:#595959}span.bm{font-size:8.0pt;color:#595959}span.eq{font-size:8.0pt;color:#C3731C}h5.bj{margin-top:0cm;text-indent:.05pt;line-height:normal}span.er{font-size:8.0pt;font-family:"Calibri","sans-serif"; color:#595959} /**/
RNS Number : 2785I
Danakali Limited
08 August 2019


Thursday, 8 August 2019


Credit approval received by Inglett & Stubbs International for Colluli power plant


·   Afreximbank has confirmed that formal credit approval has been granted for a US$42M guarantee in support of Inglett & Stubbs International's Colluli power plant


·   Increases Afreximbank's participation in Colluli to US$142M, demonstrating their confidence in the Project and comfort investing in Eritrea


Danakali Limited (ASX: DNK, LSE: DNK, Danakali or the Company) is pleased to announce that African Export-Import Bank (Afreximbank) has granted credit approval to provide preferred power contractor, Inglett & Stubbs International (ISI), with a US$42M guarantee which will facilitate senior debt funding for the Colluli Sulphate of Potash Project's (Colluli or the Project) power plant (the Guarantee). As announced separately on Monday, 5 August 2019, Afreximbank, in partnership with Africa Finance Corporation (AFC, together the Mandated Lead Arrangers), has also obtained approval to provide the Colluli Mining Share Company (CMSC) with a US$200M senior debt facility to fund construction and project execution for the Project. Obtaining credit approval for the Guarantee further demonstrates Afreximbank's confidence in Colluli and comfort investing in Eritrea.


The Guarantee allows ISI's project financing to advance towards completion. ISI's senior debt facility will be utilised to construct a power plant at Colluli. ISI will utilise a Build Own Operate Transfer (BOOT) model. The BOOT model diversifies project risk by utilising the experience of proven operators. ISI's power generation solution is designed to match the Front End Engineering Design (FEED) power requirements and has been integrated into the FEED results.


The Guarantee is separate from CMSC's project financing requirements and does not represent an increased debt obligation for CMSC.


See Appendix A for an overview of Afreximbank and ISI.


For more information, please contact:




Niels Wage

Chief Executive Officer

+61 8 6189 8635

William Sandover

Head of Corporate Development & External Affairs

+61 499 776 998


Corporate Broker - Numis Securities


UK IR/PR - Instinctif Partners

John Prior / Matthew Hasson / James Black /

Paul Gillam

+44 (0)20 7260 1000

David Simonson / Sarah Hourahane /

Dinara Shikhametova

[email protected]

+44 (0)207 457 2020


Visit the Company's website: www.danakali.com

Follow Danakali on LinkedIn: www.linkedin.com/company/danakali-limited

Subscribe to Danakali on YouTube: www.youtube.com/channel/UChGKN4-M4lOvPKxs9b-IJvw



Appendix A: About Afreximbank and ISI


About Afreximbank




Afreximbank is the foremost Pan-African multilateral financial institution devoted to financing and promoting

intra- and extra-African trade. The bank was established in October 1993 by African governments, African

private and institutional investors, and non-African investors. Afreximbank's mission is to stimulate a consistent

expansion, diversification and development of African trade while operating as a first class, profit-oriented,

socially responsible financial institution and a centre of excellence in African trade matters. Afreximbank has

won numerous awards for their work.


For more information, visit https://afreximbank.com/.


About ISI




ISI, based in Atlanta, Georgia, United States, is a highly experienced, global provider of power generation, distribution and communications facilities. With a long-term partnering approach, ISI provides turnkey Engineering Procurement Construction solutions, facilities and critical infrastructure, operations and maintenance services, and full service electrical and communications services. They have extensive experience in providing power generation facilities to the mining sector throughout the Middle East and Africa and excel at rapid implementation of custom solutions.


For more information, visit http://isiprime.com.


- - - ENDS - - -



About Danakali


Danakali Limited (ASX: DNK, LSE: DNK) (Danakali, or the Company) is an ASX- and LSE-listed potash company focused on the development of the Colluli Sulphate of Potash Project (Colluli or the Project). The Project is 100% owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).


The Project is located in the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Mineralisation within the Colluli resource commences at just 16m, making it the world's shallowest potash deposit. The resource is amenable to open pit mining, which allows higher overall resource recovery to be achieved, is generally safer than underground mining, and is highly advantageous for modular growth.


The Company has completed a Front End Engineering Design (FEED) for the production of potassium sulphate, otherwise known as Sulphate of Potash or SOP. SOP is a chloride free, specialty fertiliser which carries a substantial price premium relative to the more common potash type; potassium chloride (or MOP). Economic resources for production of SOP are geologically scarce. The unique composition of the Colluli resource favours low energy input, high potassium yield conversion to SOP using commercially proven technology. One of the key advantages of the resource is that the salts are present in solid form (in contrast with production of SOP from brines) which reduces infrastructure costs and substantially reduces the time required to achieve full production capacity.


The resource is favourably positioned to supply the world's fastest growing markets. A binding take-or-pay offtake agreement has

been confirmed with EuroChem Trading GmbH (EuroChem) for up to 100% (minimum 87%) of Colluli Module I SOP production.


Development Finance Institutions, Africa Finance Corporation (AFC) and African Export Import Bank (Afreximbank, together the

Mandated Lead Arrangers), have obtained formal credit approval to provide CMSC with US$200M in senior debt finance.


The Company's vision is to bring Colluli into production using the principles of risk management, resource utilisation and

modularity, using the starting module (Module I) as a growth platform to develop the resource to its full potential.


Competent Persons Statement (Sulphate of Potash and Kieserite Mineral Resource)


Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 1,289Mt @11% K20 Equiv. and 7% Kieserite. The Mineral Resource contains 303Mt @ 11% K20 Equiv. and 6% Kieserite of Measured Resource, 951Mt @ 11% K20 Equiv. and 7% Kieserite of Indicated Resource and 35Mt @ 10% K20 Equiv. and 9% Kieserite of Inferred Resource.


The information relating to the Colluli Mineral Resource estimate is extracted from the report entitled "Colluli Review Delivers Mineral Resource Estimate of 1.289Bt" disclosed on 25 February 2015 and the report entitled "In excess of 85 million tonnes of Kieserite defined within Colluli Project Resource adds to multi agri-commodity potential" disclosed on 15 August 2016, which are available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.


Competent Persons Statement (Sulphate of Potash Ore Reserve)


Colluli Proved and Probable Ore Reserve is reported according to the JORC Code and estimated at 1,100Mt @ 10.5% K2O Equiv. The Ore Reserve is classified as 285Mt @ 11.3% K2O Equiv. Proved and 815Mt @ 10.3% K2O Equiv. Probable. The Colluli SOP Mineral Resource includes those Mineral Resources modified to produce the Colluli SOP Ore Reserves.


The information relating to the January 2018 Colluli Ore Reserve is extracted from the report entitled "Colluli Ore Reserve update" disclosed on 19 February 2018 and is available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.


Competent Persons Statement (Rock Salt Mineral Resource)


Colluli has a JORC-2012 compliant Measured, Indicated and Inferred Mineral Resource estimate of 347Mt @ 96.9% NaCl. The Mineral Resource estimate contains 28Mt @ 97.2% NaCl of Measured Resource, 180Mt @ 96.6% NaCl of Indicated Resource and 139Mt @ 97.2% NaCl of Inferred Resource.


The information relating to the Colluli Rock Salt Mineral Resource estimate is extracted from the report entitled "+300M Tonne Rock Salt Mineral Resource Estimate Completed for Colluli" disclosed on 23 September 2015 and is available to view at www.danakali.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.


AMC Consultants Pty Ltd (AMC) independence


In reporting the Mineral Resources and Ore Reserves referred to in this public release, AMC acted as an independent party, has no interest in the outcomes of Colluli and has no business relationship with Danakali other than undertaking those individual technical consulting assignments as engaged, and being paid according to standard per diem rates with reimbursement for out-of-pocket expenses. Therefore, AMC and the Competent Persons believe that there is no conflict of interest in undertaking the assignments which are the subject of the statements.


Quality control and quality assurance


Danakali exploration programs follow standard operating and quality assurance procedures to ensure that all sampling techniques and sample results meet international reporting standards. Drill holes are located using GPS coordinates using WGS84 Datum, all mineralisation intervals are downhole and are true width intervals.


The samples are derived from HQ diamond drill core, which in the case of carnallite ores, are sealed in heat-sealed plastic tubing immediately as it is drilled to preserve the sample. Significant sample intervals are dry quarter cut using a diamond saw and then resealed and double bagged for transport to the laboratory.


Halite blanks and duplicate samples are submitted with each hole. Chemical analyses were conducted by Kali-Umwelttechnik GmBH, Sondershausen, Germany, utilising flame emission spectrometry, atomic absorption spectroscopy and ion chromatography. Kali-Umwelttechnik (KUTEC) has extensive experience in analysis of salt rock and brine samples and is certified according by DIN EN ISO/IEC 17025 by the Deutsche Akkreditierungsstelle GmbH (DAR). The laboratory follows standard procedures for the analysis of potash salt rocks chemical analysis (K+, Na+, Mg2+, Ca2+, Cl-, SO42-, H2O) and X-ray diffraction (XRD) analysis of the same samples as for chemical analysis to determine a qualitative mineral composition, which combined with the chemical analysis gives a quantitative mineral composition.


Forward looking statements and disclaimer


The information in this document is published to inform you about Danakali and its activities. Danakali has endeavoured to ensure that the information enclosed is accurate at the time of release, and that it accurately reflects the Company's intentions. All statements in this document, other than statements of historical facts, that address future production, project development, reserve or resource potential, exploration drilling, exploitation activities, corporate transactions and events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements.


Factors that could cause actual results to differ materially from those in forward-looking statements include market prices of potash and, exploitation and exploration successes, capital and operating costs, changes in project parameters as plans continue to be evaluated, continued availability of capital and financing and general economic, market or business conditions, as well as those factors disclosed in the Company's filed documents.


There can be no assurance that the development of Colluli will proceed as planned. Accordingly, readers should not place undue reliance on forward looking information. Mineral Resources and Ore Reserves have been reported according to the JORC Code, 2012 Edition. To the extent permitted by law, the Company accepts no responsibility or liability for any losses or damages of any kind arising out of the use of any information contained in this document. Recipients should make their own enquiries in relation to any investment decisions.


Mineral Resource, Ore Reserve, production target, forecast financial information and financial assumptions made in this announcement are consistent with assumptions detailed in the Company's ASX announcements dated 25 February 2015, 23 September 2015, 15 August 2016, 1 February 2017, 29 January 2018, and 19 February 2018 which continue to apply and have not materially changed. The Company is not aware of any new information or data that materially affects assumptions made.


No representation or warranty, express or implied, is or will be made by or on behalf of the Company, and no responsibility or liability is or will be accepted by the Company or its affiliates, as to the accuracy, completeness or verification of the information set out in this announcement, and nothing contained in this announcement is, or shall be relied upon as, a promise or representation in this respect, whether as to the past or the future. The Company and each of its affiliates accordingly disclaims, to the fullest extent permitted by law, all and any liability whether arising in tort, contract or otherwise which it might otherwise have in respect of this announcement or any such statement.


The distribution of this announcement outside the United Kingdom may be restricted by law and therefore any persons outside the United Kingdom into whose possession this announcement comes should inform themselves about and observe any such restrictions in connection with the distribution of this announcement. Any failure to comply with such restrictions may constitute a violation of the securities laws of any jurisdiction outside the United Kingdom.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

Quick facts: Danakali Ltd

Price: 0.625

Market: ASX
Market Cap: $165.99 m

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Danakali focused on closing project financing and kicking off construction...

Danakali Ltd (ASX:DNK, LON:DNK) CEO Niels Wage caught up with Proactive London's Andrew Scott soon after announcing they'd received credit approval for a US$200 million senior debt facility to fund construction of the Colluli Potash Project in Eritrea. He says they're continuing to assess a...

on 22/8/19