Danakali Ltd (ASX:DNK) (LON:DNK) (OTCMKTS:SBMSF) has been granted a trading halt by the ASX with an announcement pending in regard to a proposed capital raising.
The halt will remain in place until the beginning of regular trade on Thursday, April 29, or when an announcement is released to the market, whichever occurs earliest.
Danakali’s shares last traded at A$0.505 while its market cap is approximately A$161.4 million.
Resignation of CFO
Earlier this month, the company’s chief financial officer Stuart Tarrant resigned in order to pursue another career opportunity with the company thanking him for his “valuable contribution”.
Head of finance Greg MacPherson has taken on the majority of Tarrant’s responsibilities with the balance being assumed by the executive chairman and existing external accounting support at Bellatrix Corporate.
Led secured debt process
Tarrant became CFO in June 2017 and led the process to obtain US$200 million of senior secured debt for the Colluli Potash Project in Eritrea from Africa Finance Corporation and African Export Import Bank.
Drawdown of the facility remains subject to satisfaction of customary conditions precedent, which are well progressed.
The company is focused on the development of the Colluli Sulphate of Potash Project in Eritrea, which is 100%-owned by the Colluli Mining Share Company (CMSC), a 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO).