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Danakali benefits from office-based work programs underway

Danakali says it is well funded to complete current planned activities and to withstand the impact during this volatile period.

Danakali Ltd -

Danakali Ltd (ASX:DNK) is in a fortunate position with ongoing work programs related to its Colluli Potash Project being desk-based.

COVID-19 has resulted in Danakali suspending all non-essential projects but the desk-based work programs can continue with staff working from home.

The company continues to monitor the potential impact on its operations and has rolled out a business continuity plan and has mobilised all resources to continue to work on various workstreams according to the EPCM plan. 

At this stage, Danakali has made significant progress with the delivery of phase 1 and has commenced phase 2 of its EPCM plan.

Tranche 2 funding deferred

Due the market environment, the second tranche of AFC Investment’s equity funding will be deferred to allow for the stabilisation of the market and global conditions.

That said, with the receipt of the $31.8 million first tranche of AFC’s investment, Danakali is well funded to complete the current activities and close out the balance of the funding. 

The deferral of tranche two will allow both parties to satisfy the remaining conditions precedent to Danakali’s debt financing and allow Danakali to reassess its overall funding strategy.

Quick facts: Danakali Ltd

Price: 0.385 AUD

ASX:DNK
Market: ASX
Market Cap: $122.72 m
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