- Danakali (DNK) has raised $20.3 million to advance the company’s Colluli Sulphate of Potash Project in Eritrea
- The capital raise follows DNK’s board restructure announced earlier this month
- Through an over-subscribed placement, the company issued more than 47 million shares to institutional and sophisticated investors, priced at 43 cents
- Additionally, DNK’s directors will subscribe for 1.08 million shares on the same terms as the placement
- The proceeds are set to drive early works at Colluli, including road development and geotechnical optimisation, as well as engineering at the project
- The program is slated to commence immediately
- Danakali shares have dipped 4.95 per cent to trade at 48 cents each
Danakali (DNK) has raised $20.3 million to advance the company’s Colluli Sulphate of Potash Project in Eritrea.
The successful capital raise follows a board restructure announced by the potash developer earlier this month.
Through an over-subscribed placement, DNK issued more than 47 million ordinary shares to institutional and sophisticated investors at 43 cents per share.
In addition, the company’s directors intend to collectively subscribe for 1.08 million shares to raise $464,400 on the same terms as the placement.
The proceeds are set to drive early works at Colluli, including road development, geotechnical optimisation, completion and installation of the site’s reverse osmosis plant, and relocation of the exploration camp.
Danakali will inject some of the funds into engineering for the project and allocate some for use as general working capital as well.
DNK Executive Chairman Seamus Cornelius commented on the capital raise.
“We are delighted by the strong interest from new institutional and sophisticated investors, as well as the support from existing shareholders and would like to thank them for their participation in this heavily oversubscribed fundraise,” he said.
“With the completion of this placement, and subject to agreement on timing and priorities with our partners in Eritrea, the company can now fund key activities, which allows us to move forward immediately with the early works at Colluli that will ensure efficient mine construction,” Seamus added.
Early program works at the Colluli Project will commence immediately.
On the market this afternoon, Danakali shares are down 4.95 per cent, trading at 48 cents at 3:56pm AEST.