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Danakali receives first tranche of equity investment from Africa Finance Corp.

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World Fertilizer,


Danakali Ltd. has received the proceeds of the first tranche of its US$50 million strategic equity investment from Africa Finance Corp. (AFC).

AFC’s strategic equity investment is part of the overall funding package for development and construction of the Colluli Sulphate of Potash Project.

Tranche 1 consists of 53 million new ordinary shares in Danakali (Shares) issued to AFC at a price of AUS$0.60 per Share to raise US$21.5M (AUS$31.8 million). Tranche 1 proceeds will be used to commence Colluli project execution.

Tranche 2 is subject to Danakali shareholder approval at a general meeting expected to be held in February 2020, execution of Colluli Mining Share Company (CMSC) senior debt documentation and other conditions precedent. It will consist of approximately 70 million Shares at the same issue price as Tranche 1 to raise the remaining US$28.5 million (AUS$42.0 million).

Read the article online at: https://www.worldfertilizer.com/potash/11122019/danakali-receives-first-tranche-of-equity-investment-from-africa-finance-corp/

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