Danakali aims to distribute $108m to shareholders following Colluli sale

27th October 2023 By: Marleny Arnoldi - Deputy Editor Online

ASX-listed Danakali has confirmed it will distribute 90% of the Colluli Potash project sale proceeds in January next year, following the sale of the project, which is located in Eritrea, in the three months ended September 30.

The company confirmed on October 27 that it had received a second and final tranche payment of $16-million for the sale of the project, which is based in Eritrea, to Sichuan Road and Bridge Group.

The total proceeds from the sale transaction amount to $121-million, or A$173-million, meaning shareholders will receive a return of $.042 apiece from the sale.

The return comprises a capital return of $0.273 apiece and a dividend of $0.14.7 apiece.

Danakali will host a meeting of shareholders to approve the proposed capital return on November 24, following which, if approved, the distribution will be made on or about January 8.

Beyond the Colluli transaction, Danakali has advanced a number of potential new opportunities in line with its strategy of becoming a leading exploration and development company in the Australian and African critical mineral sectors.

The company’s shares on ASX remain suspended until it is able to demonstrate compliance. Danakali’s shares were suspended from trading on April 3 following the Colluli sale announcement, as the ASX determined that Danakali’s operations were no longer adequate to warrant the continued trading of its securities.