The pitch is around the Colluli sulphate-of-phosphate project, which is half-owned by an Eritrean state-owned enterprise.

The company will maintain its ASX listing. 

Colluli has a forecast build cost of US$302 million with an IRR of 28.1% and payback period of 3.25 years, with an equity raise likely to come once debt financing has been announced.

The shallow openpit project is forecast to go into production 2-to-2.5 years after financing is arranged.

The 472,000 tonne per annum project will send between 87% and 100% of its product to EuroChem under an offtake agreement signed last month, although the actual cash figure was not released.

Production would double to almost 1Mtpa when the project moves to stage two, at a cost of $200 million.

Danakali said it hoped to list on the LSE on July 24.

Executive chairman Seamus Cornelius said the African experience in London would be helpful as Colluli moved toward construction.

"The LSE listing provides us with additional access to sophisticated investors in London and internationally with a strong appetite for advanced stage development projects and a good understanding of the African mining and resource environment," he said.

"We, and our partner ENAMCO, are excited to be progressing the development of this world-class project, and delivering a long-term and stable supply of premium fertiliser for years to come." 

London investors will likely be interested in Eritrea's investment risk profile, with government actions (especially in Africa) hitting portfolios hard in the past year.

Danakali has said the joint venture arrangement with the 25-year-old dictatorship of Isaias Afewerki will provide stability.

Extractives specialist the Natural Resource Governance Institute said this year ENAMCO was the worst state-owned enterprise to do business with out of 74 assessed, and said the country's resources framework scored so poorly it was "highly likely that benefits flow only to some companies and elites".

Danakali has said it has had only positive experiences in Eritrea, describing Afewerki's government as "transparent, collaborative and responsive" and saying it had seen "no evidence of corruption".

The company's share price dropped 2.7% on the announcement to A71c.