Canaccord is set to support Danakali’s equity raising strategy aimed at closing the funding gap for the project financing of Colluli Mining Share Company (CMSC).
In its latest quarterly report for the period ending June 30, the company highlighted various activities planned for the following quarter, including project financing and project development at its Colluli Sulphate of Potash Project in Eritrea, Eastern Africa.
The project, which is a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO) is 75 kilometres from the Red Sea coast, making it one of the most accessible potash deposits globally.
Continuing equity capital strategy
Danakali has continued monitoring the recovery of the financial markets to focus on the execution of project financing and progress is being made with the satisfaction of conditions precedent to allow CMSC senior debt drawdown.
The company will continue to carry out its equity capital strategy for the remaining project financing and capital requirements subject to global market conditions.
In terms of project development, Danakali is focused on the following:
- Completing the additional identified test work to advance the Project;
- Finalising the update of FEED estimate and review of the execution schedule;
- Continuing desk top study of further opportunities with the Water Intake Treatment Area;
- Continuing to monitor and assess the impact of COVID-19 to advance the EPCM work; and
- Identify and pursue appropriate opportunities, delivered on a desk top basis.
At the end of the June quarter, Danakali had A$15.8 million cash on hand.