West Perth—Australian potash junior Danakali Ltd. said it has raised A$5.5 million (US$4.2 million) from investors to fund work at the Colluli potash project in Eritrea, East Africa. The company raised the funds through the placement of 25 million shares at 22 Australian cents each with its largest shareholder, Hong Kong-based investment vehicle Well Efficient Ltd. The funds raised will be used to start front-end engineering and design (FEED) work at Colluli and initiate the mine contract tendering process, as well as complete the mining approvals process and secure offtake agreements and further strategic relationships and working capital. “Danakali is now well funded and can focus on progressing Colluli throughout 2016, including the securing of project funding and offtake,” said Paul Donaldson, Danakali’s managing director. The development cost of the first phase of the Coluli project to produce some 425,000 mt/y of sulfate of potash was put at US$298 million, according to the definitive feasibility study completed late last year, and which is currently targeted for commissioning in the fourth quarter of 2018 (GM Dec. 4, 2015). Danakali is 50:50 partnered in the project by the Eritrean National Mining Corp.
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