Danakali Ltd (ASX:DNK, LSE:DNK, OTC:SBMSF) has requested to cancel the admission of its ordinary shares from the London Stock Exchange (LSE) in a move described as being in the interests of shareholders.
The move will increase administrative efficiencies for the company with respect to completing its full funding solution.
It comes as around 97% of DNK’s current UK institutional investors are opting to invest on the ASX through their nominees.
Stakeholder support for the decision was received from Eritrean National Mining Corporation (ENAMCO), Afreximbank (AFX), African Finance Corporation (AFC), major shareholders of DNK and other key stakeholders.
Danakali will retain the listing of its ordinary shares on the ASX.
Details
In accordance with the UK’s Financial Conduct Authority (FCA) Listing Rule 5.2.4R, Danakali has requested that the FCA cancel the admission of the company’s ordinary shares to the Standard Segment of the Official List, and in accordance with Section 4.18 of the London Stock Exchange’s Admission and Disclosure Standards has informed the London Stock Exchange of such cancellation.
It is expected that the admission of the company’s ordinary shares to the Standard Segment of the Official List and to trading on the London Stock Exchange’s Main Market for listed securities will be cancelled with effect from 0800 London time on Friday, September 24.
Danakali advises holders of depositary Interests in respect of its ordinary shares of its intention to terminate the depositary interest facility constituting those depositary interests.
Computershare Investor Services PLC shall cease to act as depositary for the purpose of issuing Danakali depositary interests with effect from the close of business on September 23.
Tests confirm proposed SOP production rates
In June Danakali confirmed the proposed production rates at its low-cost Colluli Potash Project in East Africa after test-work outlined a path to lower operating and capital costs.
Colluli Mining Share Company (CMSC), a joint venture vehicle with ownership split between Danakali and ENAMCO, conducted the extensive test-work program over a six-month timeframe.
Promisingly, analysis has revealed the project’s sulphate of potash (SOP) production rates align with a previous front-end engineering and design study.
Ultimately, the test-work program proves Danakali can produce SOP using only filtered seawater, lowering the opex and capex costs tied to the compound’s production.
Colluli hosts the world’s largest JORC-compliant solid salt and sulphate of potash reserve, weighing in at 1.1 billion tonnes.