Danakali to miss out on second AFC loan for Colluli potash project
Australia-based Danakali Limited has revealed that the second tranche of a loan from the Africa Finance Corporation is likely to fall through.
The company admitted it was “unlikely” to meet conditions required to receive $28.5 million from the AFC for the Colluli potash project, in Eritrea, before the 21 November deadline. But it said AFC - a pan-African multilateral development financial institution - "support of the development of the Colluli Project remains firm".
"As Danakali’s largest shareholder and one of the two mandated lead arrangers and lender under the Colluli Project’s $200 million Debt Financing, AFC is in discussion with Danakali with a view to finding a funding structure suitable to both parties that will ensure the commencement of construction of the project as soon as possible," the company added.
