[ERITREA] Mineral Explorer, Danakali Shares Update On The Newly Issued 8,571 Fully Paid Ordinary Shares

As per ASX announcement on 3rd January 2018, Danakali Limited (ASX: DNK / LSE: DNK) has applied to the UK Listing Authority for the admission of the 8,571 new fully paid ordinary Shares to the authority’s list and to trading on the LSE’s Main Market for listed securities. These shares have been allotted and issues in lieu of fees to its corporate advisors, as per the announcement on 21 December 2018.

In accordance with the FCA’s Disclosure and Transparency Rule 5.6.1(R), the Company confirms its capital stock including 264,422,398 ordinary shares of no-par value, as on 31 December 2018 as compared to 264,413,827 no-par value ordinary shares as at 30 November 2018. The Company does not possess any ordinary shares in reserves.

The dealing is anticipated to begin on 4 January 2019. The new ordinary Shares will be treated at par with the existing Ordinary Shares, in all aspects.

Danakali Limited is involved in potassium drilling and exploration across Eritrea, East Africa through its flagship Colluli Potash Project. The project is wholly owned by the Colluli Mining Share Company, a joint venture between Danakali Limited and the Eritrean National Mining Company. As per the announcement on 6 December 2018, the Colluli Mining Share Company will be providing fully underwritten debt finance facilities of USD 200 million to fund the development of the project.

The potassium-rich East African region has the unique competence of producing various types of potash including SOP (sulphate of potash, MOP (muriate of potash) and SOP-M (sulphate of potash magnesia). Located approximately 75 kms away from the Red East Coast, it is cited as one of the world’s most accessible potash deposit base. With resource deposits starting at just 16m, the site is a source of the world’s thinnest and lowest potash resources. Located just 230 km from the established Massawa port, the site enjoys access to port’s bulk and container loading facilities.

On 15th November, the company expressed its relief with the decision of United Nations to lift the arms restriction and associated authorizations on Eritrea.

As per the Company’s recently released quarterly report, the company’s ordinary shares were admitted to the standard section of the UK authority’s official list and to trading on the LSE’s Main Market on 24 July 2018, as a part of the dual listing scheme. The company reported cash on hand of AUD 11.8 million for the quarter ending September 2018. As at 30th September 2018, the company reported 264,197,463 fully paid ordinary shares. A total of 3,740,000 unlisted options on issue were recorded. For the September quarter, 10k class 6 performance rights and 2k class 8 performance rights were converted to shares. The company reported a total of 1,343,000 performance rights on issue as on 30thSeptember 2018.

Over the past six months, Danakali’s stock has witnessed a performance growth of 10.45% but in the last three months the share price plunged by 11.90%. With the close of trading session today, the share price stands at AUD 0.735 (down by 0.68%), with a market capitalization of AUD 195.67 million.