Allana Potash Acquires Title to Its Danakhil Potash Project in Ethiopia
http://www.marketwire.com/press-release/allana-potash-acquires-title-to-its-danakhil-potash-project-in-ethiopia-tsx-venture-aaa-1542418.htm
•Mineral exploration licenses for the three mineral concessions in Ethiopia's northeastern Danakil Depression, totaling approximately 150 square kilometers (the "Dallol Project"), have been transferred to Allana effective July 22, 2011.
TORONTO, ONTARIO--(Marketwire - July 26, 2011) - Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or the "Company") is pleased to announce that the mineral exploration licenses for the three mineral concessions in Ethiopia's northeastern Danakil Depression, totaling approximately 150 square kilometers (the "Dallol Project"), have been transferred to Allana effective July 22, 2011. Allana agreed to acquire the properties pursuant to an option agreement in September 2008, as amended, entered into with SB Management Inc., Forbes & Manhattan Inc. and Ethio-Gibe Canada Mining PLC ("Ethio-Gibe")(the "Agreement"). Pursuant to the Agreement, Allana had the option to acquire the Dallol Project in consideration of an aggregate of $2.5 million in cash payments over 3 years and the issuance of 4 million shares, which have now been paid/issued in full. SB Management Inc., Forbes & Manhattan, Inc. and Ethio-Gibe have retained a 3.0% net smelter return royalty on the property (the "NSR"). The Company has the option, exercisable at any time, to buyout 50% of the NSR (thereby reducing the NSR to 1.5%) for $5,000,000 (see news releases dated September 17, 2008 and February 9, 2009).
Farhad Abasov, President and CEO, commented: "We are very pleased with the transfer of title having been completed, particularly in light of the recently announced dramatic increase in the potash resources at the Dallol Project (see news release dated June 20, 2011). Now that title has been formally transferred, Allana can focus on proceeding with its Feasibility Study and continuing to advance the Dallol Project towards production".
At the time of entering into the Agreement, both Forbes & Manhattan Inc. and SB Management Inc. were non-arms-length parties to the transaction as a result of an insider of each, being a 10% shareholder of Allana. This shareholding has been subsequently diluted and both Forbes & Manhattan Inc. and SB Management Inc. are no longer non-arms length to Allana. During 2009, the president of Ethio-Gibe became an officer of Allana.
About Allana Potash Corp.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally with its major focus on a previously explored potash property in Ethiopia. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana has Measured and Indicated Sylvinite Resources of 97.8 million Tonnes of 30.0% KCl; Inferred Sylvinite Resource of 108.3 million tonnes grading 31.3% KCl; Measured and Indicated Kainitite Resources of 284.2 million tonnes at 19.8%, Inferred Kainitite Resource of 271.2 million tonnes of 20.3% KCl; Measured and Indicated Upper Carnallitite Resources of 78.5 million tonnes grading 18.4% KCl, Inferred Upper Carnallitite Resource of 85.6 million tonnes of 17.1% KCl; Measured and Indicated Lower Carnallitite Resources of 212.6 million tonnes of 12.0% KCl, Inferred Lower Carnallitite Resource of 130.7 million tonnes grading 11.7% KCl. Allana has approximately 196.5 million shares outstanding and trades on the TSX-Venture Exchange under the symbol "AAA".
Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
Forward-Looking Statement
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the transfers on the Company, the effect and estimated timeline of drilling and assay results on the Company, the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting, ; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims; Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
FOR FURTHER INFORMATION PLEASE CONTACT:
Christian Scovenna
Investor Cubed
647 258 3311
info@investor3.ca
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