Danakali to Raise A$5.5M To Advance the World Class Colluli Potash Project

Danakali Ltd. (ASX:DNK) announced it has received commitments from professional and sophisticated investors to raise up to A$5.5 million through the issue of up to 25 million shares at A$0.22 each. The placement includes one free attaching unlisted option exercisable at A$0.35 with an expiry date 2 years from issue, for every two Placement Shares.
As quoted in the press release:

The Company is delighted to have the continued support of its largest shareholder, Well Efficient Limited (Well Efficient), a Hong Kong based investment vehicle with experience in Eritrea.
Funds raised from the Placement will be used for the commencement of front end engineering design (FEED) work; initiating the mine contract tendering process; completion of mining approvals process; securing offtake agreements and further strategic relationships, securing project funding (debt/equity), transaction costs and working capital.

Danakali Managing Director Paul Donaldson, stated:

We are very pleased with this successful Placement. We thank our existing shareholders for their continued support and welcome the addition of new shareholders to our register. Danakali is now well funded and can focus on progressing Colluli throughout 2016, including the securing of project funding and offtake. The international profile of Colluli is rapidly growing. This world class project at the centre of booming Asian and African population centres is destined to support a globally significant agri-commodity business for decades to come.

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