Danakali explores new liquidity options following sale of the Colluli Potash Project

These include an off-market share buyback and further distribution of the company’s cash reserves in the form of a capital return. Any such initiatives would be open to all shareholders and backed by expert opinion on tax implications.

Following distribution to shareholders of proceeds from the sale of the Colluli Potash project, Danakali has cash reserves of approximately US$38 million, or 10.5 cents per share.

The decision to explore new liquidity options follows recent notification from the ASX that Danakali’s latest proposal to seek a faster path to re-listing of the company’s shares has been rejected.

Danakali Executive Chairman Seamus Cornelius said that while the company would continue to explore with the ASX the best way to accelerate re-listing, Danakali would also actively explore the other liquidity options.

These include, but are not limited to, further cash distributions through a capital return, an off-market share buyback and corporate transactions where they make sense for shareholders and for the company.

Mr Cornelius said the board would consider all potential opportunities for shareholders.

“We believe the extended suspension of our shares puts our shareholders in a difficult position and we will now explore other options to achieve additional liquidity while continuing to engage with the ASX,” he said.

“In doing so, we will be mindful of the Danakali’s long-term strategy of adding value through diligent management of prospective development assets, shareholder value generation as the cornerstone of any corporate transaction, and the tax effectiveness of any liquidity initiative.”

Read the article online at: https://www.worldfertilizer.com/potash/18012024/danakali-explores-new-liquidity-options-following-sale-of-the-colluli-potash-project/