Danakali Ltd (ASX:DNK) has issued 450,000 new shares with a total value of almost $180,000 after the early exercising of unlisted options.

There were 400,000 shares issued on exercise of unlisted options with an exercise price of $0.405 each for $162,000.

Another 50,000 shares were issued for a value of $17,500 on the exercise of options with an exercise price of $0.35 each.

Both lots of options were due to expire on 13 May 2018 and represent a significant discount to last Friday’s close of $0.72.

Danakali is 50% owner of the Colluli Potash Project in Eritrea, East Africa.

The company is developing Colluli in partnership with the Eritrean National Mining Corporation (ENAMCO).

Mineralisation within the resource begins at just 16 metres, making it the world’s shallowest potash deposit and amenable to open pit mining.

Danakali has completed a Front End Engineering Design (FEED) for the production of potassium sulphate, otherwise known as SOP.

This is a chloride-free, specialty fertiliser which carries a substantial price premium relative to the more common potash type, potassium chloride or MOP.

The study demonstrates a project level net present value (NPV) of US$902 million with internal rate of return (IRR) of 29.9% for modules I and II.

Colluli has a JORC-2012 compliant measured, indicated and inferred mineral resource estimate of 1,289 million tonnes at 11% K20.