Danakali

Danakali Limited (ASX: DNK, LSE: DNK) is a Sulphate of Potash company developing the Colluli Project in Eritrea. It has industry-leading capital intensity, highly attractive economic returns and the potential to become the worlds-first zero-carbon producer of SOP. The Project is located in Eritrea and is ~75km from the Red Sea coast, making it the most accessible known potash deposits globally. The Project carries a low level of complexity due to the unique geology of the salt deposit amenable to open-cut mining, creating predictable processing outcomes, plant feed grade, and production rates using simple, commercially proven mineral processing technology. The Project will be in full compliance with the Equator Principles and the IFC standards for Environmental and Social Performance, including international best practices on human rights, verified by independent experts. Colluli has also been recognized in a favourable report from the United Nations Development Program that this development could meet an unprecedented 13 out of a possible 17 of its sustainable development goals. Danakali Limited has advanced funding to move towards constructing the Colluli Project in the Northern Red Sea Region of Eritrea. A binding offtake agreement has been confirmed with EuroChem for up to 100% of Module I SOP production. A term sheet and mandate for US$200M in senior debt funding to CMSC has been executed with Mandated Lead Arrangers Africa Export-Import Bank and Africa Finance Corporation. An additional UA$21.5m equity investment from African Finance Corporation. This socially and environmentally responsible Project listed business will generate returns for shareholders over the next 200 years while providing the critical natural fertiliser ingredients to grow premium crops necessary to bolster sustainable, climate-smart food production whilst improving regional global food security.