SYDNEY: Danakali Limited has completed a bookbuild to domestic and international institutional and sophisticated investors to raise A$20.3 million.
The proceeds of the Placement will be applied towards early works at the Company’s Colluli SOP Project, including site road development, geotechnical optimisation, reverse osmosis plant completion and installation, exploration camp relocation and RA International mine camp installation. In addition, proceeds will be used towards detailed engineering for the Project and for general working capital requirements.
Seamus Cornelius, Executive Chairman, commented: “We are delighted by the strong interest from new institutional and sophisticated investors as well as the support from existing shareholders and would like to thank them for their participation in this heavily oversubscribed fundraise. With the completion of this placement and subject to agreement on timing and priorities with our partners in Eritrea, the Company can now fund key activities which allows us to move forward immediately with the early works at Colluli that will ensure efficient mine construction”.
Euroz Hartleys Limited is the Lead Manager and Bookrunner to the Placement. Canaccord Genuity (Australia) Limited acted as Co-Manager to the Placement. Shore Capital Stockbrokers Limited acted as Danakali’s sole Bookrunner and placement agent to investors in the United Kingdom.
In addition to the Placement Danakali’s Directors have indicated their intention to collectively subscribe for 1,080,000 shares to raise $464,400. Resolutions to approve participation by Directors will be put to shareholders at a general meeting planned to be held in or around June 2021.