Danakali’s Colluli project’s $200 million loan documentation final

By Wendy Van Sickle

Columbus, Ohio, Dec. 23 – Danakali Ltd. announced that Colluli Mining Share Co. has executed definitive documentation to receive $200 million of senior debt financing through Africa Finance Corp. and African Export Import Bank as mandated lead arrangers.

The senior secured loans, funded equally by the lead arrangers, represent the majority of the overall project funding required for development and construction of the Colluli Potash Project in the Danakil Depression region of Eritrea, East Africa, according to a news release.

The facility will have a term of seven years, subject to scheduled amortization, and will bear interest at Libor plus 850 basis points.

Availability, subject to some conditions, will be until completion of construction and execution of the project.

Finalization of the facility documentation follows the recent announcement of Africa Finance Corp.’s $50 million equity commitment to Danakali, of which the first $21.5 million tranche has been received. Execution of the documentation satisfies one of the conditions necessary to complete the second tranche of the equity investment.

Production at the Colluli project is expected to commence in 2022.

Danakali is a mineral exploration company based in Subiaco, Australia.

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