Danakali wraps up Colluli sale, starts the hunt for tasty new projects
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Danakali has completed the sale of its 50% interest in the Colluli Mining Share Company (CMSC) to Sichuan Road and Bridge Group Co. (SRBG) for US$166 million.
Net of all government taxes, the company will receive US$121 million in 2 Tranches:
The company’s securities will be suspended from official quotation from close of market on Monday 3 April 2023, meanwhile the focus will turn to identifying new projects and potential new alternative growth opportunities.
Danakali (ASX:DNK) currently plans to distribute approximately 90% of the net proceeds to its shareholders, but the board has yet to make a formal decision regarding the proposed distribution.
“This is an excellent outcome for all stakeholders made possible by a lot of hard work by too many people to name over many years,” Executive chairman Seamus Cornelius said.
“Special thanks and acknowledgment must be made to ENAMCO, the Eritrean Ministry of Mines and Energy and SRBG.”
Danakali says it will continue to investigate suitable projects for investment of a portion of the funds received from the transaction – with a view to meeting the requirements of Listing Rule 12.1 to return to official quotation upon application to ASX.
If the company does not identify a suitable new project, the shares of DNK will remain suspended.
This article was developed in collaboration with Danakali Limited (ASX:DNK), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.