TIDMDNK
RNS Number : 8298H
Danakali Limited
06 August 2021
Announcement Friday, 6 August 2021
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Issue of Shares and Unlisted Options
Danakali Limited (ASX: DNK / LSE: DNK) (Danakali, or the
Company) confirms that it has issued a total of 1,080,000 ordinary
shares (Shares) raising $464,400, being the Director Placement
Shares referred to in the Company's previous announcement dated 29
April 2021.
The Company also confirms the issue of 2,000,000 unlisted
options to Executive Chairman Mr Seamus Cornelius (or nominee)
exercisable at $0.64 expiring 30 July 2025 (Director Options).
Shareholder approval for the issue of the Shares and Director
Options was received at the Company's annual general meeting held
30 July 2021.
The Company advises the proposed issue of 8,000,000 unlisted
options to employees of the Company on the same terms as the
Director Options (Employee Options). The issue of Employee Options
remain subject to acceptance of offers by the offerees.
A completed Appendix 2A in respect of the Shares and an Appendix
3B in respect of the proposed Employee Options has been lodged
together with this announcement and is available for download at:
Appendix 2A and Appendix 3B .
Secondary Trading Exemption - s708A Notice
Danakali gives notice under section 708A(5)(e) of the
Corporations Act 2001 (Cth) (Act) of the following:
-- The shares were issued without disclosure under Part 6D 2 of the Act;
-- This notice is being given under section 708A(5)(e) of the Act;
-- As at the date of this notice, the Company has complied with:
_ The provisions of Chapter 2M of the Act as they apply to the Company; and
_ Section 674 of the Act; and
-- As at the date of this notice, there is no information:
_ That has been excluded from a continuous disclosure notice in
accordance with the ASX Listing Rules; and
_ That investors and their professional advisers would
reasonably require for the purpose of making an informed assessment
of:
o The assets and liabilities, financial position and
performance, profits and losses and prospects of the Company;
or
o The rights and liabilities attaching to the shares.
Total voting rights
The Company advises that it has, conditional on admission,
allotted and issued 1,080,000 new fully paid ordinary shares of no
par value in the Company (Ordinary Shares).
Application has been made to the UK Listing Authority for the
admission of those 1,080,000 new Ordinary Shares to the Official
List of the UK Listing Authority and to trading on the London Stock
Exchange's Main Market for listed securities and it is expected
that dealings will commence on 11 August 2021. The new Ordinary
Shares will rank pari passu in all respects with the existing
Ordinary Shares in issue.
Following admission, the Company will have in issue a total of
368,334,346 Ordinary Shares. The Company does not hold any Ordinary
Shares in treasury.
Therefore, the total number of voting rights in the Company is
368,334,346 which may be used by shareholders or other persons as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the Company under the FCA's Disclosure Guidance
and Transparency Rules.
For more information, please contact:
Danakali
Seamus Cornelius Mark Riseley
Executive Chairman Head of Corporate Development
+61 8 6266 8368 +61 8 6266 8368
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
Announcement authorised for release by the Company Secretary of
Danakali.
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 known potash deposit. The resource is amenable
to open cut 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), have obtained
formal credit approval to provide CMSC with US$200M in senior debt
finance. The credit documentation was executed in December 2019,
allowing drawdown of CMSC senior debt on satisfaction of customary
conditions precedent. This represents the majority of funding
required for the development and construction of the Colluli.
Project execution has commenced and 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.
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.
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END
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August 06, 2021 02:56 ET (06:56 GMT)
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