DNK.L Share News (DNK)

(Alliance News) - Danakali Ltd on Monday said Africa Finance Corp and African Export Import Bank have obtained formal credit approval to provide the Colluli Mining Share Co with USD200 million in senior debt finance.

The project developer said the facility will be part of the overall project funding package used for development and construction of the Colluli Potash project in the Danakil Depression region of Eritrea, East Africa.

The project is 100% owned by the Colluli, a 50/50 joint venture between Danakali and the Eritrean National Mining Corp.

The debt facility remains subject to completion of final documentation and will be subject to conditions precedent to drawdown, Danakali said.

"We look forward to working with the Mandated Lead Arrangers to complete conditions precedent and reach financial close," said Danakali Chief Executive Niels Wage. "I am very pleased to achieve credit approval as it represents one of the last remaining milestones prior to project execution."

Danakali shares were untraded in London on Monday, last closing at 40.00 pence each.