Danakali Ltd (ASX:DNK) ("Danakali" or "Company") advises that 150,000 performance rights were issued to employees under the Company's Performance Rights Plan and 400,000 unlisted options were issued to advisors as consideration for services received.
The company also advises that 800,000 unlisted options (each option exercisable at $0.408 on or before 4 November 2018) (Options) have lapsed effective 20th June 2017. The Options lapsed in accordance with their terms of issue following the cessation of employment of the holder of the Options.
A completed Appendix 3B has been lodged together with this announcement.
Shareholders can view all Danakali's announcements on the ASX website (www.asx.com.au) and Danakali's website (www.danakali.com).
For more information, please contact:
Paul Donaldson Managing Director
+61 8 6315 1444
About Danakali Ltd
Danakali is an ASX listed company and 50% owner of the Colluli Potash Project in Eritrea, East Africa. The company is currently developing the Colluli Project in partnership with the Eritrean National Mining Corporation (ENAMCO).
The project is located in the Danakil Depression region of Eritrea, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Mineralisation within the Colluli resource commences at just 16m, making it the world's shallowest potash deposit. The resource is amenable to open pit mining, which allows higher overall resource recovery to be achieved, is generally safer than underground mining and is highly advantageous for modular growth.
The company has completed a definitive feasibility study for the production of potassium sulphate, otherwise known as SOP. SOP is a chloride free, specialty fertiliser which carries a substantial price premium relative to the more common potash type; potassium chloride. Economic resources for production of SOP are geologically scarce. The unique composition of the Colluli resource favours low energy input, high potassium yield conversion to SOP using commercially proven technology. One of the key advantages of the resource is that the salts are present in solid form (in contrast with production of SOP from brines) with which reduces infrastructure costs and substantially reduces the time required to achieve full production capacity.
The resource is favourably positioned to supply the world's fastest growing markets.
Our vision is to bring the Colluli project into production using the principles of risk management, resource utilisation and modularity, using the starting module as a growth platform to develop the resource to its full potential.
Danakali Limited, Level 1, 234 Churchill Avenue, Churchill Court, Subiaco, Perth, WA 6008 Page 1 of 1 ABN 56 097 904 302
Tel: +61 8 6315 1444
Appendix 3B New issue announcement
Appendix 3BRule 2.7, 3.10.3, 3.10.4, 3.10.5
New issue announcement, application for quotation of additional securities and agreementInformation or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.
Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13
Name of entity
DANAKALI LTD
ABN
56 097 904 302
We (the entity) give ASX the following information.
Part 1 - All issuesYou must complete the relevant sections (attach sheets if there is not enough space).
Performance Rights - Class 5
Performance Rights - Class 6
Unlisted Options
1 +Class of +securities issued or to be issued
1. 100,000
2. 50,000
3. 400,000
Number of +securities issued or to be issued (if known) or maximum number which may be issued
Conversion to ordinary shares is subject to the achievement of vesting conditions
Conversion to ordinary shares is subject to the achievement of vesting conditions
Unlisted options exercisable at $0.96 per option (130% of the 30-day volume weighted average price of the fully paid ordinary shares traded up to 19 June 2017), expiring 20 June 2019 (two years from date of issue)
Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid
+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)
+ See chapter 19 for defined terms.
04/03/2013 Appendix 3B Page 1
Appendix 3B
New issue announcement
No - upon conversion into ordinary shares, the allotted and issued shares will rank equally in all respects with an existing class of quoted securities. The performance rights do not entitle the holder to participate in the next dividend or interest payment.
No - upon conversion into ordinary shares, the allotted and issued shares will rank equally in all respects with an existing class of quoted securities. The performance rights do not entitle the holder to participate in the next dividend or interest payment.
No - shares issued on exercise of the options will rank equally in all respects with fully paid ordinary shares then on issue. The options do not entitle the holder to participate in the next dividend or interest payment.
Do the +securities rank equally in all respects from the +issue date with an existing +class of quoted +securities?
If the additional +securities do not rank equally, please state:
the date from which they do
the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
5
Issue price or consideration
1.
Nil
2.
Nil
3.
The options were issued to advisors as consideration for services received. No additional cash consideration was paid.
Issued to Project Construction Manager in accordance with employment contract
Issued to Chief Financial Officer in accordance with employment contract
Issue of unlisted options to advisors as consideration for services received.
6 Purpose of the issue
(If issued as consideration for the acquisition of assets, clearly identify those assets)
Yes
6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?
If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i
19 May 2017
6b The date the security holder resolution under rule 7.1A was passed
400,000 Unlisted Options
6c Number of +securities issued without security holder approval under rule 7.1
+ See chapter 19 for defined terms.
Appendix 3B Page 2 04/03/2013
6d Number of +securities issued with security holder approval under rule 7.1A
Appendix 3B New issue announcement
N/A
N/A
6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)
100,000 Performance Rights - Class 5
50,000 Performance Rights - Class 6
6f Number of +securities issued under an exception in rule 7.2
N/A
6g If +securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.
N/A
6h If +securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements
Capacity under L.R.7.1 is 11,722,638 Capacity under LR7.1A is 22,695,522
6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements
20 June 2017
7 +Issue dates
Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.
Cross reference: item 33 of Appendix 3B.
Number | +Class |
246,875,868 | Ordinary Shares |
8 Number and +class of all +securities quoted on ASX (including the +securities in section 2 if applicable)
+ See chapter 19 for defined terms.
04/03/2013 Appendix 3B Page 3
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