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Danakali and AFC agree extension for funding completion

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World Fertilizer,

Danakali and Africa Finance Corp. (AFC) have agreed to an extension to the deadline for completion of Tranche 2 of the equity funding for Danakali's Colluli sulfate of potash project in Eritrea. The deadline has been extended to on or before 21 November 2020. 

As announced on 31 March 2020, the Tranche 2 funding had been deferred to allow for the stabilisation of market and global conditions. The extension allows time for satisfaction of the remaining CPs and is considered necessary in response to, amongst other things, the constraints arising from global restrictions imposed due to the Covid-19 pandemic.

With the receipt of Tranche 1 of AFC’s investment of US$21.5 million (AUS$31.8 million) in December 2019, Danakali remains well funded for planned corporate initiatives and to complete the current activities related to EPCM Phase 2. Tranche 2 (US$28.5 million: AUS$42 million) is part of the overall funding package for the development and construction of the Colluli project. The project remains on track for production during 2022 as outlined in the company's Quarterly Report.

Niels Wage, CEO, commented: “We are pleased to announce this extension. The progress reflects the constructive dialogue and partnership between the Company and AFC, which is highlighted by the recent appointment to the Board of AFC’s Samaila D Zubairu, President and CEO, and Taiwo Adeniji, Senior Director for Investment Operations and Execution as Non-Executive Directors.”

Samaila D Zubairu, President and CEO of AFC, commented: “AFC continues to be a great supporter of Colluli and we are confident in Danakali’s competence to successfully deliver the Project. We remain committed to our US$150 million funding across the CMSC Senior Debt and equity investments.”

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