Danakali (ASX:DNK) is seeking to shift its primary securities exchange listing from the Australian Securities Exchange (ASX) to the National Stock Exchange of Australia (NSX).
NSX is a fully operational and regulated stock exchange that was approved under the Corporations Act 2001 in February 2000. The exchange is focused on listing small to medium-sized enterprises.
The company, which has $31 million in cash at hand, has made this decision to provide shareholders with the opportunity to trade shares after an extended period of suspension on the ASX and to move to “a more appropriate exchange.”
This decision follows the sale of Danakali’s interest in the Colluli Potash Project in Eritrea. Shareholders received $162 million in dividends and capital returns from the sale proceeds.
Danakali has retained sufficient funds to satisfy potential obligations arising from the sale of Colluli and to take the company in a fresh direction with a new portfolio of assets.
Chairman Seamus Cornelius says the strict application of the ASX Listing Rules at this time is not in shareholders’ interests.
“There was no case for committing more than $15 million to exploration over the next two years, as required under the ASX Listing Rules, when the funding requirements for the projects we are contemplating is far lower,” Cornelius says.
“Simply, it would have been an imprudent use of shareholders’ funds. We don’t need to spend money at those levels to test and advance these projects.
“After lengthy and careful consideration, we conclude that transition to the NSX was in the best interests of Danakali and our investors.”
Cornelius adds that the NSX provides the company and its shareholders with a robust and professional trading platform that is well-suited to its goals.
“Importantly, it allows our investors to trade shares and new investors to come onto the register to get exposure to what we hope will be several new projects of the stature of Colluli,” he says.
Danakali’s listing on the NSX is subject to approval, making an announcement to shareholders and satisfying the ASX. The company is also required to release the full terms of ASX’s in-principle decision upon Danakali making a formal application for the ASX to remove it from the exchange.
The company has a pipeline of new project opportunities and plans to engage with advisors in Saudi Arabia to secure exposure to the country’s emerging mineral opportunities, specifically targeting gold, copper, and battery metals.
Danakali has lodged an application for an exploration licence in Eritrea, comprising the Ela Gedel licence which is prospective for copper and gold.
Danakali is a precious metal and critical minerals explorer and developer focused on its assets in the Arabian-Nubian Shield and Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Danakali
