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Danakali: Notice to Proceed issued to DRA Global

December 20, 2019 GMT

LONDON--(BUSINESS WIRE)--Dec 20, 2019--

Danakali Limited (ASX: DNK, LSE: DNK, Danakali or the Company ), is pleased to announce that the Colluli Mining Share Company ( CMSC ) has issued a Notice to Proceed to DRA Global ( DRA ), the preferred provider of Engineering, Procurement and Construction Management ( EPCM ) services for the Colluli Sulphate of Potash Project ( Colluli or the Project ). The Notice to Proceed is an interim agreement that allows DRA and CMSC to commence the EPCM process. Further, the Colluli Mining Share Company ( CMSC ) Board has resolved to commence EPCM phases 1 & 2.

DRA is a high quality, multi-disciplinary global project management and engineering group with strong African experience and EPCM delivery capability. The scope of DRA’s contract includes:

EPCM phase 1 & 2 activities will include:

The purpose of the phased EPCM approach is to ensure that CMSC achieves technical, commercial, financial and nameplate requirements that satisfy the economic model, funding criteria and the expectations of all stakeholders. CMSC’s phased EPCM approach follows.

Project Director, Tony Harrington, said: “I am very pleased we will be formalising our partnership with DRA after over a year of quality and positive interactions with their team. With the majority of project funding committed the CMSC Owner’s Team is ready and eager to collaborate with DRA and commence work immediately. This is the moment our personnel and other stakeholders in Eritrea have been waiting for.” (see excerpts from a 2019 interview with Mr. Harrington at http://www.danakali.com.au/investor-relations/asx-announcements )

EPCM phases 1 & 2 - Mobilisation

EPCM phases 3 to 6 - Construction

Production

  • Mobilise EPCM Owner’s Team
  • Finalise geotechnical work
  • Purchase critical equipment, including reverse osmosis plant
  • Investigate optimisation opportunities
  • Develop optimal execution strategy
  • Finalisation of engineering design and development
  • Finalisation of vendor packages
  • Procurement
  • Finalisation and award of site contracts
  • Construction
  • Commissioning and ramp-up
  • Module I – 472ktpa of SOP
  • Modules I & II – 944ktpa of SOP
  • Shipping from the Port of Massawa, Eritrea

2.25 years from commencement of project execution to production

Visit the Company’s website: www.danakali.com

Follow Danakali on LinkedIn: www.linkedin.com/company/danakali-limited

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Announcement authorised for release by the board of Danakali.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191220005147/en/

CONTACT: Danakali

Niels Wage

Chief Executive Officer

+61 8 6189 8635

William Sandover

Head of Corporate Development & External Affairs

+61 499 776 998

Corporate Broker – Numis Securities

John Prior / James Black / Paul Gillam

+44 (0)20 7260 1000

UK IR/PR – Instinctif Partners

Mark Garraway / Sarah Hourahane / Dinara Shikhametova

danakali@instinctif.com

+44 (0)207 457 2020

KEYWORD: AUSTRALIA/OCEANIA EUROPE AUSTRALIA UNITED KINGDOM

INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY NATURAL RESOURCES FINANCE ENGINEERING PROFESSIONAL SERVICES OTHER CONSTRUCTION & PROPERTY MINING/MINERALS MANUFACTURING

SOURCE: Danakali Limited

Copyright Business Wire 2019.

PUB: 12/20/2019 04:47 AM/DISC: 12/20/2019 04:47 AM

http://www.businesswire.com/news/home/20191220005147/en