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Danakali board approves dual listing plans

21st November 2017

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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JOHANNESBURG (miningweekly.com) – Potash junior Danakali on Tuesday announced its intention to list on the LSE next year, becoming the second ASX-listed exploration and development firm to announce a dual listing in London this week.

On Monday, gold junior Crusader Resources unveiled its plans to trade its shares on London’s Aim, as it seeks to capture the benefits of a previously contemplated merger with Stratex International.

Danakali said its dual listing, planned for the first half of 2018, was in line with its equity strategy, which included mobilising UK, European and Middle East institutional interest, increasing share trading liquidity and further raising the profile of the Colluli potash project, in Eritrea.

“The analysis and advice sought by Danakali from external parties indicates that the LSE is clearly the world’s leading stock exchange for Africa-focused mining companies,” the potash junior said in a statement.

The LSE and Aim markets have attracted three new Africa-focused mining listings in the last few months, including Altus Strategies, Cora Gold and AfriTin. Altus Strategies, which has exploration assets in Cameroon, Ethiopia, Morocco and Liberia, was admitted to trading on the Aim in August, having raised £1.1-million.  Cora Gold, a West African gold explorer and developer, started trading on the Aim in October, raising £3.45-million. AfriTin, which owns various assets in Namibia and South Africa, made its London debut earlier this month.

Dankali is well funded and said that it had no specific plans to raise capital in line with the LSE listing. Its shares will also continue to be listed and traded in Australia, where the company has strong broker support.

“The decision to list on the LSE is the result of careful consideration and reflects our learnings from extensive interactions with investment communities globally with respect to the company and the Colluli project,” MD Paul Donaldson said.

The Colluli project is fully permitted for construction and offtake negotiations are ongoing.

A definitive feasibility study (DFS) for the production of potassium sulphate was completed in November 2015. Phase 1 is expected to produce about 425 000 t/y of sulphate of potash (SOP) product. Phase 2 will increase total SOP production to 850 000 t/y.

Edited by Creamer Media Reporter

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