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Danakali warns shareholders of lowball bids during trading halt

EditorRachael Rajan
Published 01/19/2024, 09:02 AM
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LONDON - Danakali Limited, an Australian-based mining company, has alerted its shareholders to unsolicited acquisition offers that undervalue the company's shares. The notice follows the recent sale of Danakali's Colluli potash project, which was sold for A$154.7 million.

Executive Chairman Seamus Cornelius cautioned shareholders about these below-value bids, which have been made at 1c per share while the company's trading is suspended. He urged shareholders to exercise caution and seek professional advice when dealing with these offers.

In the wake of the project sale, Danakali has already returned A$38 million to its shareholders, equating to approximately 10.5c per share. The company is actively considering other ways to enhance shareholder value, including potential share buybacks and further capital returns.

Moreover, Danakali is looking to expand its portfolio by acquiring a new exploration license in Eritrea. This license will allow the company to explore a vast area of 1,537 km² for copper and gold, signaling a strategic shift towards diversifying its mineral assets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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