– AUSTRALIA, Perth – Danakali Limited (ASX: DNK | LON: DNK) today announced the appointment of Neil Gregson as Non-Executive Director with immediate effect bringing significant technical mining and international investment experience to the Board.
The company also announced the retirement of Paul Donaldson and Andre Liebenberg.
“I am very pleased that Neil Gregson with his wealth of experience in mining and project finance has agreed to join the Danakali Board at a very exciting time for the Company. We look forward to benefitting from Neil’s involvement as we complete the funding package and bring the Colluli project into production as quickly and safely as possible for the benefit of all stakeholders,” said Board Chairman, Seamus Cornelius.
He added: “Paul and Andre’s contributions to the Company have been very valuable throughout their tenure as Non-Executive Directors. They both brought extensive experience and sound judgement to the Company. On behalf of the Company, we wish Andre all the very best in the future and I personally express my sincere thanks for his support, guidance and friendship. I am excited about continuing to work with Paul and look forward to his ongoing contributions. Board transition is an integral part of our Company’s development and a key enabler for its growth and success.”
About Neil Gregson
Mr Gregson is a qualified mining engineer with deep experience in the resources sector. He has over 30 years of experience as an investment manager predominantly in the mining and energy sectors.
Mr Gregson’s most recent role was as a portfolio manager at J.P. Morgan Asset Management Global Equities Team based in London where he was responsible for global natural resources mandates. He held prior investment management roles at CQS Asset Management as a Senior Portfolio Manager focused on natural resources and at Credit Suisse as Head of Emerging Markets and related sector funds.
About Danakali
Danakali Limited is an ASX- and LSE-listed potash company focused on the development of the Colluli Sulphate of 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 the Danakil Depression region of Eritrea, East Africa, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Mineralisation within the Colluli resource commences at just 16m, making it the world’s shallowest known potash deposit. The resource is amenable to open-cut mining, which allows 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, otherwise known as Sulphate of Potash or SOP. SOP is a chloride free, speciality fertiliser which carries a substantial price premium relative to the more common potash type; potassium chloride. Economic resources for the production of SOP are geologically scarce. The unique composition of the Colluli resource favours low energy input, high potassium yield conversion to SOP using commercially proven technology. One of the key advantages of the resource is that the salts are present in solid form (in contrast with the production of SOP from brines) which reduces infrastructure costs and substantially reduces the time required to achieve full production capacity.
The resource is favourably positioned to supply the world’s fastest-growing markets. A binding take-or-pay offtake agreement has been confirmed with EuroChem Trading GmbH for up to 100% (minimum 87%) of Colluli Module I SOP production.
Development Finance Institutions, Africa Finance Corporation and African Export Import Bank, have obtained formal credit approval to provide CMSC with US$200M in senior debt finance. The credit documentation was executed in December 2019, allowing drawdown of CMSC senior debt on the satisfaction of customary conditions precedent. This represents the majority of funding required for the development and construction of the Colluli. AFC has also executed a Subscription Agreement to make a US$50M strategic equity investment in Danakali. The receipt of the first tranche of US$21.5M (A$31.8M) allowed commencement of the development.
Project execution has commenced and SOP production is expected during 2022. The Company’s vision is to bring Colluli into production using the principles of risk management, resource utilisation and modularity, using the starting module as a growth platform to develop the resource to its full potential.
For more information: https://www.danakali.com.au/
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