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Danakali major shareholder increases interest through option exercise

The option exercise also means the company receives $1.75 million in new funding.
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Well Efficient Ltd now holds 35 million shares in total for 13.33% of the company

Danakali Ltd (ASX:DNK) has had major shareholder, Well Efficient Ltd, increase its holding to 13.33% in the company.

The increase came about through the issue of 5 million shares upon exercise of 5 million options with a strike price of 35 cents each.

This option exercise provides the company with $1.75 million in additional funding and takes its holding to 35 million shares in total.

READ: Danakali poised to develop the world's largest undeveloped sulphate of potash deposit

In February 2018, Danakali updated its sulphate of potash ore reserve at its flagship Colluli Potash Project in Eritrea.

The reserve is 1.1 billion tonnes at 10.5% potassium oxide for 203 million tonnes of contained sulphate of potash (SOP) equivalent.

This provides an expected mine life of circa 200 years at proposed production rates.

Colluli’s reserve was updated as part of the Front End Engineering Design (FEED) phase, which investigated options to improve production and cost outcomes.

READ: Danakali sulphate of potash reserve supports mine life of 200 years at Colluli

Danakali is focused on off-take, funding, and project execution in 2018.

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