Danakali Notes CMSC Execution Of USD200 Million Potash Project Mandate

LONDON (Alliance News) - Danakali Ltd on Thursday said Colluli Mining Share Co has executed a ...

Alliance News 6 December, 2018 | 12:52PM
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LONDON (Alliance News) - Danakali Ltd on Thursday said Colluli Mining Share Co has executed a mandate that will provide USD200 million of debt financing to fund the Colluli potash project in Eritrea.

The Colluli project is 100% owned by CMSC, which itself is a joint venture between Danakali and the Eritrean National Mining Corp. Both parties own 50% of the joint venture.

African Export-Import Bank and Africa Finance Corp will act as mandated lead arrangers, facilitating and leading investors in the loan.

The mandated lead arrangers will proceed to credit approval and execution of the loan facility with CMSC once due diligence is complete and all preconditions are satisfied.

"The execution of the mandate represents a significant milestone for the Colluli project funding," said Danakali Chief Financial Officer Stuart Tarrant.

"We are very pleased to be partnering with strong, experienced African financial institutions. Initial bank due diligence and subsequent negotiations have significantly advanced the project financing process," Tarrant added.

Shares in Danakali were down 3.1% at 46.50 pence on Thursday in London.

By Anna Farley; annafarley@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Danakali Ltd 44.00 -
Danakali Ltd 0.75 AUD -0.27 -
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