Danakali Limited (NSX:DNK) has expressed renewed optimism regarding its pending exploration licence application in Eritrea following the expiration of US Government sanctions on the country. The US Treasury Office of Foreign Assets Control confirmed on 18 September 2026 that the national emergency declared under Executive Order 14046 has expired, resulting in the removal of several Eritrean entities and individuals from the specially designated nationals list. Entities delisted include the People's Front for Democracy and Justice, the Eritrean Defense Forces, Red Sea Trading Corporation, and Hidri Trust, along with certain designated individuals.
The company believes this development may positively influence foreign investment sentiment toward Eritrea and could assist in advancing its licence application. Danakali submitted its application for the Ela Gedel exploration licence in November 2023. The licence area, spanning 1,500 square kilometers within the Gash Barka region, covers gold and base metal exploration potential.
The company emphasizes that while the removal of US measures represents a positive development, it does not guarantee licence approval, and significant uncertainty remains regarding the outcome and timeline of the application process under Eritrean law. The company's board believes the sanctions removal will reduce compliance complexity and perceived reputational risk for potential financiers, contractors, service providers, insurers, and joint venture partners considering involvement in Eritrean exploration projects. Additionally, the measure should ease practical difficulties that foreign companies encounter when engaging with parties applying conservative US sanctions screening protocols.
Executive Chairman Seamus Cornelius described the development as a positive and overdue step for Eritrea, stating that it removes an impediment to the nation's economic development rights and expressing the company's commitment to continued long-term involvement in mineral exploration within the country. Should Danakali secure the Ela Gedel licence, the company intends to establish a branch office in Asmara and develop a local exploration team. The company anticipates this establishment process will require between three to six months following licence approval before commencing the planned exploration program.
Danakali operates as a precious metals and critical minerals exploration and development company with assets in Australia and the Arabian-Nubian Shield region.
Source: mining.com.au