Danakali Ltd has provided a quarterly update on the activities and financial position of the company and its Colluli Potash Project, located in Eritrea, East Africa. The Project is 100% owned by the Colluli Mining Share Company (CMSC), a joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).
Colluli is ‘shovel ready’ pending funding. Danakali and CMSC are focused on logistics and other technical collaboration aspects with offtake partner EuroChem, operational contracts, operations readiness, funding and corporate social responsibility initiatives. Risk assessments and compliance checks are ongoing to support execution and operations readiness. Additionally, Danakali is looking into organic certification for Colluli’s products.
Mandated lead arrangers (MLAs), AFC and Afreximbank, have completed due diligence and commenced the internal approval processes required ahead of credit approval for US$200 million of CMSC senior debt.
Outside of the CMSC senior debt process, the company continues to move the project’s funding requirements forward through the following avenues:
- Extensive awareness exercises carried out to further raise the profile of Danakali and Colluli.
- Ongoing discussions with strategic, institutional and private client investors and brokers globally.
- Moving towards financial close for Colluli Module I in parallel with the CMSC senior debt process.
Specific conditions of final contracts agreed at CMSC level for EPCM, mining services and power. Major contracts have been reviewed by the legal counsel appointed by the MLAs. Feedback has been received with respect to senior debt compatibility and no material gaps exist.
Execution preparedness continues, including ongoing collaboration with DRA Global. Several sub-contractor visits to Asmara, the Port of Massawa and Colluli were held during the first quarter of 2019. Potential mechanical services and camp provider sub-contractors were among those that carried out preliminary due diligence ahead of CMSC issuing tender packages.
Read the article online at: https://www.worldfertilizer.com/potash/30042019/dankali-releases-quarterly-update-on-colluli-potash-project/