Africa Finance Corp. and African Export Import Bank secured formal credit approval for the previously announced US$200 million senior debt facility for Colluli Mining Share Co. to fund the development and construction of the Colluli potash project in Eritrea.
Colluli Mining is held in a 50/50 joint venture by Danakali Ltd. and Eritrean National Mining Corp.
The mandated lead arrangers secured formal approval of export credit support from South Africa's statutory export credit and foreign investment insurance provider, Export Credit Insurance Corp. of South Africa SOC Ltd.
The seven-year facility will be funded equally and underwritten by Africa Finance and African Export Import Bank.
Danakali said Aug. 5 that it is in advanced discussions with potential strategic investors to secure the remaining capital needed to bring Colluli into production. CEO Niels Wage said the funds provide the majority of the project's needs for construction and execution.