ASX-listed potash junior Danakali has been given board approval to progress with a dual listing on the London Stock Exchange.It seems London, together with its Alternative Investment Market (AIM) is attracting the most interest for new listings. Between August and October this year AIM has welcomed two new entrants – Altus Strategies and Cora Gold - and a third new player, AfriTin added its name to the list in November.
It is expected that Danakali's dual listing will be executed within H1 CY,2018. The dual listing is in line with the company’s equity strategy which includes effectively mobilising significant UK, European, and Middle East institutional interest, increasing share trading liquidity, and further raising the profile of the world class Colluli potash project in Eritrea.
The analysis and advice sought by Danakali from external parties indicates that the LSE is clearly the world’s leading stock exchange for African focused mining companies.
There are currently limited opportunities for exposure to mining companies of Danakali’s size and quality on the London Stock Exchange, and it is expected that this dynamic will serve to strengthen interest.
It was determined to be an appropriate dual listing stock exchange for Danakali for various reasons including liquidity, access to funds, relative size of other companies, profile benefits, costs, and the company’s growth potential.
Danakali has been working with a select group of UK brokers, legal advisers, and Investor and public relations firms, and expects to make appointments in the immediate term.
“The decision to list on the LSE is the result of careful consideration and reflects our learnings from extensive interactions with investment communities globally with respect to the company and the Colluli project,” says Danakali MD, Paul Donaldson
The company is well funded and currently has no specific plans to raise capital in line with the LSE listing. The company’s shares will continue to be listed and trade on the Australian Stock Exchange (ASX). The ASX is set to remain an important listing jurisdiction for Danakali as it progresses.
The company has strong broker support in Australia, has accumulated a substantial retail and high net worth following on the ASX, and has experienced material share price gains since the release of the Colluli Definitive Feasibility Study and completion of project permitting.
Off-take discussions for Colluli are well advanced and running in parallel with funding workstreams and front-end engineering design (FEED) is nearing completion.
“Our ultimate aim is to drive value and optimal outcomes for our shareholders and stakeholders (including our JV partners, ENAMCO), through the successful development of Colluli. The company sees the LSE dual listing as a key step to unlocking the investor interest and equity funding required to achieve that goal.”