Chairman of Danakali (ASX:DNK) Seamus Cornelius has increased his shareholding in the company with an on market purchase of ordinary shares.
He acquired 54,500 shares at $0.27 a share.
This follows purchases of shares by the non executive chairman in late 2015.
Recently, Danakali was the subject of a research report by broker Hartleys which projected a price target of $0.64. This was on the back of a strong DFS for its large Colluli potash (SOP) project in Eritrea.
Capex has been reduced significantly (phase 1 capex now US$298m), but opex has risen. The higher opex still allows for a large cash margin and short payback.
The reserve is very large (1.1t @10.76% K2O) with an expected mine life >200years, producing 425kt-850kt pa.
Mining is open pit mining using conventional truck and shovel and surface miners (no blasting required), with a low strip ratio (1.9x).
The Company will begin the application for a mining licence early 2016.
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