TIDMDNK
RNS Number : 2399I
Danakali Limited
11 August 2021
Announcement Wednesday, 11 August 2021
============= ==========================
Proposed Cancellation of London Listing
Danakali Limited (ASX: DNK / LSE: DNK) (Danakali) announces that
in accordance with Listing Rule 5.2.4R the Company has requested
that the Financial Conduct Authority cancel the admission of the
Company's ordinary shares to the Standard Segment of the Official
List, and in accordance with Section 4.18 of the London Stock
Exchange's Admission and Disclosure Standards has informed the
London Stock Exchange of such cancellation. It is expected that the
admission of the Company's ordinary shares to the Standard Segment
of the Official List and to trading on the London Stock Exchange's
Main Market for listed securities will be cancelled with effect
from 0800 London time on Friday 24 September 2021
(Cancellation).
Danakali will retain the listing of its ordinary shares on the
ASX.
Danakali advises holders of Depositary Interests in respect of
its ordinary shares of its intention to terminate the Depositary
Interest Facility constituting those Depositary Interests.
Computershare Investor Services PLC shall cease to act as
depositary for the purpose of issuing Danakali Depositary Interests
with effect from the close of business on 23 September 2021. Prior
to the date of Cancellation, Depositary Interest holders may
withdraw their Depositary Interests and arrange for the transfer of
the underlying Danakali ordinary shares into their own name (or
that of a nominee) to hold directly on Danakali's Australian share
register; or if Depositary Interest holders take no action, then
upon Cancellation on 24 September 2021 they will automatically be
issued shares on a 1:1 basis on the Australian share register,
maintained by Danakali's Australian registrar, Computershare
Investor Services Pty Limited. Depositary Interest Holders will
receive individual notice to this effect as required under the
Depositary Interest Facility documentation.
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.
11 August 2021
Dear Depositary Interest holder,
Cancellation of Depositary Interests (DIs) representing Ordinary
shares of Danakali Limited - ISIN: AU000000DNK9
Computershare Investor Services PLC (the 'depositary') hereby
gives 30 days' notice of termination under clause 14.1 of the Deed
dated 29 June 2018 in respect of Danakali Limited ("Danakali")
Depositary Interests.
Accordingly, Computershare Investor Services PLC shall cease to
act as depositary for the purpose of issuing Danakali Depositary
Interests with effect from the close of business on 23 September
2021 (the 'Effective Date').
On the Effective Date the Depositary Interest facility shall
terminate and Depositary Interests will be cancelled in accordance
with the terms of the Deed.
Prior to the Cancellation Date, DI holders may withdraw their
DIs and arrange for the transfer of the underlying Danakali Shares
into their own name (or that of a nominee) to hold directly on the
Australian share register. If DI holders take no action, then on 24
September 2021 it is expected they will automatically be issued
shares on a 1:1 basis on the Australian share register. This
register is maintained by the Company's Australian registrar,
Computershare Investor Services Pty Limited.
Please do not hesitate to contact Computershare UK should you
have any questions in relation to cancellation of the DIs at:
By Mail: Computershare Client Services PLC, The Pavilions,
Bridgwater Road, Bristol BS99 6ZZ
Phone Enquiries: 0370 702 0000
Yours faithfully
Jonathan Sterling
Client Manager - Depositary Interest Team
Computershare Investor Services PLC
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 11, 2021 02:00 ET (06:00 GMT)
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