Danakali

Danakali Limited (ASX: DNK, LSE: DNK) is a potash company focused on the development of the Colluli Potash Project. The Project is 100% owned by the Colluli Mining Share Company, a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation. The Project is located in Eritrea and is ~75km from the Red Sea coast, making it one of the most accessible known potash deposits globally. Mineralisation commences at just 16m, making it the worlds shallowest known potash deposit. The resource is amenable to open pit mining, allowing higher overall resource recovery to be achieved, is generally safer than underground mining, and is highly advantageous for modular growth. The Company has completed a Front End Engineering Design for the production of potassium sulphate (or SOP). SOP is a chloride free, specialty fertiliser carrying a substantial price premium to MOP, to the more common potash type. Economic resources for SOP production are geologically scarce. Collulis unique salt composition favours low energy input, high potassium yield conversion to SOP using commercially proven technology. Additionally, the salts are present in solid form (rather than brines) which reduces infrastructure costs and the time required to achieve full production capacity. A binding offtake agreement has been confirmed with EuroChem for up to 100% of Module I SOP production. A term sheet and mandate for US$200M in senior debt funding to CMSC has been executed with Mandated Lead Arrangers Africa Export Import Bank and Africa Finance Corporation. The release of a report on Colluli commissioned by the United Nations Development Programme highlights its potential to boost the Eritrean economy and support the countrys UN Sustainable Development Goals. The Companys vision is to bring Colluli into production using the principles of risk management, resource utilisation and modularity to unlock value for all stakeholders.