China’s state-owned construction firm Sichuan Road and Bridge Group Co. Ltd. (SRBG) has agreed to a binding agreement to buy 50% of the Colluli Mining Share Co. (CMSC), from Australia’s Danakali Ltd. for US$166 million, according to a Jan. 12 statement by Danakali.
The sulfate of potash (SOP) project, located in Eritrea, East Africa, is 100% owned by CMSC, a 50:50 joint venture between Danakali and the Eritrean National Mining Corp. Danakali announced in October that it had executed a term sheet with SRBG for the sale (GM Oct. 7, 2022).
Danakali said the parties aim to complete the transaction in the second quarter of 2023.
Danakali expects to receive US$122 million from the deal after taxes, and pending shareholder approval it plans to distribute 90% of net proceeds to shareholders. It expects to continue as a listed company to identify new projects and potential alternative growth opportunities.