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yes, i agree.. once we're up & running, project expansion is the next step.. it's nice to see them allowing for that.
Also, as you know, SOP is very lucrative. I would love to see some headway in that area shortly after production begins. I wonder if ICL has any SOP experience??
news:
Allana Potash Provides Project Update- Significant Progress Continues at Its Danakhil Project
http://www.marketwatch.com/story/allana-potash-provides-project-update-significant-progress-continues-at-its-danakhil-project-2014-06-23-7173139?reflink=MW_news_stmp
-- Technical program / testing with ICL continuing on aquifer and commercial cavern work
-- Debt financing program activities advancing with potential lenders
-- Infrastructure -build progressing with all road, port and rail facilities
TORONTO, ONTARIO--(Marketwired - June 23, 2014) - Allana Potash Corp. (TSX:AAA) ("Allana" or the "Company") provides an update to investors regarding the development of its flagship Danakhil potash project in northeastern Ethiopia. Significant progress has been made so far this year in all areas of critical pre-construction project work such as technical optimization studies, bank debt financing and infrastructure development.
TECHNICAL & SOCIAL PROGRAM WORK
The Ministry of Water, Irrigation and Energy has granted Allana an exlcusive right to extract approximately 30,000,000 cubic metres of water per year which greatly exceeds the requirements for planned MOP production of 1 million tonnes per year which is estimated at 18,500,000 cubic metres per year.
Optimization studies, including in-fill drilling, water field supply pre-construction development and additional solution mining work, are ongoing with ICL/AAA technical committee guidance.
Final review of potential EPCM contractors for project pre-construction studies is in progress.
After 18 months of dialogue and cooperation, the hamlets of Mororo and Alai Lai in the Afar region have been relocated and re-established under Allana's Relocation Assistance Plan approved by the Ethiopian Government and the IFC.
APA (Allana Potash Afar), in partnership with the Afar regional government, opened a dormant clinic in the village of Hamad Ela in May 2014 to provide primary health care to the local Afar people. To date, 219 patients have been treated at this new facility.
INFRASTRUCTURE BUILD
Construction at Tadjoura Port in Djibouti is proceeding and target completion is projected by the Djibouti Ports and Free Zones Authority (DPFZA) for Q1 2016. Allana expects to be granted construction access for the Tadjoura Potash Terminal facility starting from mid-2015.
Allana is completing the final elements of the commercial arrangement with the DPFZA, having clarified the physical and operations service interfaces between the DPFZA Tadjoura Port and Allana Tadjoura Potash Terminal facilities.
Construction of 120 km of upgraded highway in Djibouti is also proceeding with completion projected by the Djibouti Ministry of Transport and Infrastructure to be by early 2015.
Construction of 110 km of highway in Ethiopia near Allana's project site is expected to start with contracting by the Ethiopian Roads Authority in late 2014.
Tender is now out for the construction of the 216 km Asayita to Tadjoura railway project with contractor bids due to the Ethiopian Railway Authority in early August 2014.
DEBT FINANCING
Allana has worked with ICL to integrate project preparation activities with those of the lender group, and financing program activity is proceeding
Core lender group and major supply-country export credit agency lender are following their processes in cooperation with Allana and its advisors
Timeline for completion of all debt financing expected to be late fall, early winter of this year
Farhad Abasov, Allana's President & CEO stated: "All aspects of our project have been progressing extremely well since we signed our transformative strategic alliance agreement with ICL Ltd. (Israel Chemicals Ltd.) in February, 2014. Not only have we benefited from ICL's technical, operational, and engineering expertise, but ICL has been instrumental in assisting Allana Potash with our infrastructure and transportation logistics planning and implementation procedures. In addition, the take-or-pay contract signed with ICL for 80% of our eventual potash production has not only solidified the financial robustness of our project, it has also attracted interest from international commercial banks and large investment institutions, as well as some private equity entities. This has allowed us to consider more flexible forms of additional debt & equity and an overall less dilutive project finance structure."
NEXT STEPS
Allana will continue to advance all the critical aspects of the project that need attention for its successful completion. In addition to the technical, financing and infrastructure development programs in progress, comprehensive taxation, customs, and foreign currency exchange agreements with the Ethiopian government thorough various ministries are currently in advanced negotiation stages and are expected be complete before the end of the year. Securing full project financing as soon as possible remains Allana's top priority and senior management continues to working diligently towards this goal.
About ICL
ICL is a global manufacturer of products based on unique minerals that fulfill humanity's essential needs, primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produce help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that we produce enable people to have greater access to more varied and higher quality food; ICL's water treatment products supply clean water to millions of people as well as industry around the world; and other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials. ICL benefits from a broad presence throughout the world and proximity to large markets, including in developing regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange (TASE: ICL). The company employs around 12,000 people worldwide, and its sales in 2013 totaled $6.3 billion. For more information, visit the company's website at www.icl-group.com.
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 three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured Sylvinite mineral resources of 115.3 million tonnes of 27.8% KCl; indicated Sylvinite mineral resources of 212.1 million tonnes of 28.6% KCl, and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts measured Kainitite mineral resources of 552.3 million tonnes at 19.4% KCl, indicated Kainitite mineral resources of 598.2 million tonnes of 19.5% KCl and an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8% KCl; estimated measured Upper Carnallitite mineral resources of 121.5 million tonnes grading 17.5% KCl, estimated indicated Upper Carnallitite mineral resources of 289.8 million tonnes of 17.2% KCl and estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured Lower Carnallitite mineral resources of 235.0 million tonnes of 9.7%KCl, estimated indicated Lower Carnallitite mineral resources of 322.2 million tonnes of 8.9% KCl and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana's Technical Report entitled "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 325.2 million common shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA". For more information, please visit the Company's website at www.allanpotash.com.
Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person 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. 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". Statements with respect to mineral resource estimates, production timelines adthe effect and timing of the fertilizer program and blending plant construction are forward-looking statements. Forward-looking statements are based on the opinions, assumptions 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. Such risks include the uncertainty with respect to the development and financing of the project on the timeline set out or at all, finally the fact that the expected benefits of the strategic alliance may not materialize, the inherent capital markets consequences of an equity controlling position, regulatory risks and such other risks as discussed in the risk factors sections of our latest annual information form, our technical reports and other continuous disclosure documents filed from time to time at www.sedar.com. 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.
just canceled the sell orders i had from last week.. she's setting up for a nice run
bring on the big news!
nice play sparker.. she's a moovin' & shakin'
Volume Alert:
Today's volume of 12,130,983 shares is on pace to be much greater than GRAS's 10-day average volume of 2,408,221 shares. (and we're only an hour into the day)
nice article.. this sector will be back w. a vengeance
nice article!
Allana Potash is pleased to forward a summary of the site tour attended by analysts and investors from May 7th and 8th in Ethiopia. On Day 1 attendees had an opportunity to meet with Ethiopian government officials who provided updates on important factors contributing to the development of Allana's Ethiopian Potash Project. Attendees also enjoyed a productive dinner meeting with Stefan Borgas, CEO of ICL and David Usher, Canadian Ambassador to Ethiopia. On Day 2, attendees travelled to the Danakhil project site and Allana's camp in Dallol, Afar Region.
A high level delegation including Idan Ofer (controlling shareholder of Israel Corp., ICL's largest shareholder) and ICL executives Stefan Borgas (CEO) and Yoram Cohen (General Manager of ICL Africa and AAA Board Member), also visited the project the day before our investor site tour and conducted meetings with government officials including the President of Ethiopia on May 8th. ICL was very impressed with our project, our staff, and the potential for the development of our project in Ethiopia.
The attendees left Ethiopia with a thorough update on Allana's progress and upcoming milestones and were very encouraged with the strategic partnership with ICL and the progress demonstrated in AAA's path to production
link to PDF
Day 1- Addis Abeba, Ethiopia (May 7, 2014)
Meeting with Mr. Getachew Tamiru State Minister of Transport
• Mr. Getachew Tamiru spoke of his Ministry`s five year transportation transformation plan and progress to date
• Over 15,000 km of highways and 21,000 km of rural roads have been completed since the start of the plan( after only 3.5 years in)
• The road from AAA’s Dallol site to Afdera is partially complete with approx. 100 km yet to be completed
• The feasibility study for this important segment of road will be completed by June and funding provided by the government soon thereafter
• Construction of this road segment is expected to be completed is expected before the start-up at Dallol in 2016
• Over 2400 km of railway line construction contracts (to be built over 5 different corridors) construction contracts have been awarded, but not all have all been funded as yet. However, bank financing for these lines are progressing
• The line from Addis to Doraleh port in Dijbouti (760km) is 40% complete and will likely be ready by 2016
• The rail line (540km) from Hara Gebeya to the new port in Tadjoura (important for AAA) is scheduled to be completed by 2018, but financing is still pending
Meeting with the Prof. Tekalegen Mamo, State Minister for Agriculture
• Prof. Tekalegen Mamo gave an update of his Ministry`s involvement and progress with the Agricultural Transformation Authority (ATA)
• Both AAA & ICL are contributing funds and expertise to this ambitious initiative to promote nutrient application to boost crop yields
• Substantial progress has been made with soil mapping, soil fertility and site trials with different NPK and sulfur fertilizer formulations
• It is estimated that farmers in Ethiopia use less than 0.001 kg per ha of KCl and should use anywhere from 50-100 kg per ha
• Significant crop yield improvements are already being seen at these site trials (600 demonstration areas already established)
• It is estimated by the ATA than 3.5 million farmers will be able to utilize these new fertilizer formulations which includes a good portion of KCl
• 5 new fertilizer blending plants will be built over the next few years, with the first one nearly ready for its official opening
• Each plant will be able to blend 300,00 tonnes of MAP & DAP annually and use approximately 100,000 tonnes of KCl
• The ATA estimates that Ethiopia could utilize 18-20 such plants as it moves towards more modern agricultural systems
Meeting with Mr. Abraham Tekeste, State Minister of Finance and Economic Development
• Mr. Abraham Tekeste gave a summary of the government’s support of Allana`s project, and the excellent track record of the Company in fulfilling its obligations over the years
• Over the past 10 years, as a result of the government`s “open for business” polices , the general economy has grown tremendously
• More attention is being paid to the mining sector for economic development potential as the country slowly moves from an agrarian to a more modernized agri- industrialized focus
• Allana was highlighted as the example for all mining companies to follow in terms of its operational integrity and social responsibility
• The Ministry is also committed to infrastructure development for the country and the mining industry in particular
• Mr. Abraham Tekeste also stated that Allana`s project was crucial for the industrial and social development of the Afar region and would work to ensure that all Government incentives and benefits would be put forward for our project
• Mr. Abraham Tekeste was asked if there was a “potash for loans” deal with the Chinese (that was widely reported in the press last week) and he stated there is nothing of the kind in the works (the Minister of Mines had indicated this as well)
Dinner meeting with Stefan Borgas, CEO of ICL and Yoram Cohen, General Manager of ICL-Africa and AAA Board Member
• Both Mr. Borgas and Mr. Cohen briefly addressed our site tour dinner and each expanded on ICL`s support for our project and for Africa
• Mr. Borgas indicated that he was again impressed with Allana’s project, site work accomplished to date, and the expertise of our staff, as well as the potential for potash demand in Ethiopia and Africa
• He told our group that Africa`s potential demand for potash could mirror that of Brazil’s (which uses 8-9 million tonnes of KCl per year over the next several years)
• He also stated that as his company becomes more comfortable with our project, Ethiopia and Africa, more investments will likely be made as he believes this is a huge, un-tapped market for potash waiting to be developed
• The evening was rounded out by very supportive remarks from Mr. David Usher, Canadian Ambassador to Ethiopia who, reiterated his and the Government of Canada`s support for Allana`s project and for Ethiopia
Day 2 – Danakhil Project Site, Afar Region (May 8, 2014)
• The AAA site tour moved from Addis (Day 1) to the Danakhil project site and camp in Dallol, Afar region
• Jason Wilkinson, Allana’s VP of Operations presented a full technical report and update on the project and the solution mining process, as well as Allana’s social responsibility initiatives in the area
• All project activities are on track with updated aquifer flow rate testing and full, commercial-sized cavern creation process testing now getting underway
lol.. not at all
just an idiotic ta site
yeah thats terrifying.. their target price is laughable
who's prediction is that anyway? three stooges chart-school??
a bid at 10¢?? gonna buy at 10¢ & sell at 4¢?
very true.. now that LTT is outta shares the real float is almost non-existent
these tests aren't testing the potency of Allana's potash.. they're testing the fertilizer requirements of Ethiopian soil.
also, looks like they're anticipating production to begin before this program ends
"Allana has contributed approximately US$200,000 to the Ethiopian ATA since February 2013 and will continue to contribute (in cash or potash volume equivalent once production begins) to ensure the success of this very important program."
too bad the volume wasn't higher on this uptick but i'll take the uptick none the less
you're reading it wrong..
that's a strange deduction and makes no sense what-so-ever.
you know ICL is currently in the potash business? why would farm soil analysis in Africa have any bearing on when Allana will be able to produce??
also, maybe i'm wrong but i doubt they're conducting all 600 field trials simultaneously
Allana Potash & ICL Sponsor Program to Be Conducted by Ethiopia's Agricultural Transformation Agency
http://online.wsj.com/article/PR-CO-20140505-903203.html
- ICL and Allana will contribute $330,000 and $200,000, respectively, to a $590,000 agricultural program to be conducted by the Ethiopian Agricultural Transformation Agency. - The two-year program will map fertility levels of Ethiopia's agricultural lands and include 600 field trials and demonstrations in 30 districts.
TORONTO, ONTARIO--(Marketwired - May 5, 2014) - Allana Potash Corp. (TSX:AAA) ("Allana" or the "Company") is pleased to announce that ICL, Allana's strategic investor, has joined Allana in its efforts to support the development of fertilizer application in Ethiopia via a contribution to the Agricultural Transformation Agency of Ethiopia.
As part of ICL's sustained efforts to support the communities in which it operates, and to encourage the proper application of fertilizers to enhance agricultural yields, ICL entered into a Memorandum of Understanding ("MOU") with Ethiopia's Agriculture Transformation Agency ("ATA"), an Ethiopian governmental agency, to conduct 600 field trials and demonstrations in 30 Ethiopian 'woredas', or districts, for the purpose of determining optimal nutrient levels for Ethiopia's agricultural areas. ICL will contribute $330,000 and ATA will contribute $60,000 to the two-year governmental program which will also develop an agricultural growth strategy for Ethiopia, engage in soil fertility mapping, and sponsor the training of a post-graduate PhD students to develop expertise on the benefits of potassium fertilizers for increased production of crops.
Farhad Abasov, Allana's President and CEO commented, "Allana has contributed approximately US$200,000 to the Ethiopian ATA since February 2013 and will continue to contribute (in cash or potash volume equivalent once production begins) to ensure the success of this very important program. In conjunction with our partner, ICL, we plan to assist in the development and expansion of a thriving fertilizer market in Ethiopia and in much of east Africa. We believe that this region and the entire African continent represent immense market potential for all nutrient consumption, especially potash. Agriculture is Ethiopia's largest and most important sector with significant growth opportunities. 16 million hectares of land are used for agricultural purposes in the country. Our commitment to the development and expansion of the agriculture sector and related agriculture businesses in Ethiopia is a fundamental cornerstone of our operating philosophy as a future potash producer in the country."
Yoram Cohen, ICL's General Manager for Africa and a member of Allana's Board of Directors added, "With these ATA initiatives in full swing over the course of the next several months, Allana Potash and ICL will be able to supply potash for Africa as well as provide value to our respective companies' shareholders as we develop these new markets."
ICL is one of the world's largest producers of fertilizers and a leader in plant nutrition technology and development. It is currently engaged in a large-scale market development project in India in collaboration with the largest fertilizers importer in the country. ICL's global marketing network possesses extensive know-how in plant nutrition, and is supported by a team of agronomists and several ICL R&D centers around the world.
The primary objective of ICL's collaboration with Ethiopia's ATA is to map the fertility levels of the country's agricultural land in order to recommend appropriate fertilizer strategies, improve fertilizer use and to demonstrate to Ethiopian farmers the benefits of potassium fertilizers for use on various crops and soil types. It is also designed to bolster Ethiopia's agricultural research capabilities in the area of soil fertility and nutrient management, as well as to establish government-approved fertilizers and fertilizers facilities.
The sustainability of agricultural systems depends, in large part, on balanced fertilization to improve soil fertility for secure and sustainable food production. Potassium fertilizers play a crucial role in improving the quality and yield of crops and thus contribute to improving the welfare of farming communities.
As a global producer of potash, phosphates and other specialty minerals that fulfill humanity's essential needs in agriculture, food and engineered materials, ICL intends to extend this project to other African countries and is currently in discussions with similar organizations in Kenya and Tanzania.
About ICL
ICL is a global manufacturer of products based on unique minerals that fulfill humanity's essential needs, primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produce help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that we produce enable people to have greater access to more varied and higher quality food; ICL's water treatment products supply clean water to millions of people as well as industry around the world; and other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials. ICL benefits from a broad presence throughout the world and proximity to large markets, including in developing regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange (TASE:ICL). The company employs around 12,000 people worldwide, and its sales in 2013 totaled $6.3 billion. For more information, visit the company's website at www.icl-group.com.
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 three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured and indicated Sylvinite mineral resources of 327.4 million tonnes of 28.3% KCl; and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts estimated measured and indicated Kainitite mineral resources of 1,150.5 million tonnes at 19.4% KCl, an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8%KCl; estimated measured and indicated Upper Carnallitite mineral resources of 411.3 million tonnes grading 17.3% KCl, estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured and indicated Lower Carnallitite mineral resources of 557.2 million tonnes of 9.2%KCl, and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana's Technical Report entitled "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 325 million common shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA". For more information, please visit the Company's website at www.allanapotash.com.
Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person and has reviewed and approved the technical information presented in this release.
i'm not convinced we're going to see the 'Target Price Range: $0.23 - $0.27' you're calling for but in the off chance we do i'll prob be adding alot more than a few
34¢ is a nice looking price to me.. it's a little below my avg and i was able to round out my holdings.. i'm still very positive on our future here
added a bit....
nice.. i gotta think locked up financing will get the pps outta the gutter
geez..
at least they're not broke & sellin shares??
i would consider the price almost doubling between the lows of last April and the highs of last May a surge for a TSX stock.. wouldn't anyone??
i also think this stock has the potential to do many times that anytime between now and production and there's a very good chance of it happening in the near future maybe with a big financing announcement. Only a fool would sell in May and go away here.. especially at these prices
could be.. just before the annual 'May Surge'
doubled up with some 1's.. couldn't resist
notes from a special meeting participant:
-The meeting went well, the offer/ agreement was excepted with a vote of 99.25 of shares voting in favor of the deal.
-Abersov talked about where we are and what we can expect going forward over the next few months or so, here are so points:
-65% of Financing will be coming from developement type banks, that is the max. they can lend to this type of project. this should all be in place by the fall at the latest.
-They talked about how the financing could/would come in lumps, so 100 million say in May/June for example than 150, in July and more in Sept. till it is complete.
-Another 100 million dollars or so could come from other forms of lenders, there has been great interest on many fronts to get in on the financing of the project build out, even from constrution companys.
-Abersov stated that he and the board are also shareholders and they want to see the min. amout of dilution to shareholders. They would only be looking at the issuing of shares down the road when the price is higher ( that is how I understood it)
-They are still looking at possiable listing on an exchange be it London or Tel-aviv, but not both.
-They have reduced the list of enginering companys from 20 down to 3. with the help of our new partner.
-It would appear ICL is very deeply involved in the future operations and direction of AAA, they are helping in all area's providing expertice from sinor staff and not from some young flunky.
-The off take is a good win for Allana, the discount rate that ICL would get is completly within the normal range for these type of deals, it is on a slidding scale, and Allana would not have to hire staff to market the potash or arrange shipment etc.etc. from what was explained this would be a great cost saving.
-They expect 100-400 thousand tons to be sold in the horn of Africa over the first 5 years, and this number to grow from there. ( low cost transport, mainly by road to the end buyer) The amount of land that has been aquired by middle east and asian countries in the horn of Africa for food production is incredible and growing daily.
-Most of the exc. and board members were there, our new man from Tel-aviv, as well as the woman who had been with Sask Potash who joined us in Jan. of this year. Also Dianne Walters was there as well.
-In the end I got the impression that we are full steam ahead to a mine, but I think we will be bought out once everthing is in place by ICL, Abersov talked about how he has brought two other companies along to the buyout stage.
-Several brokage companys were there as well.
-That is about all I can think of at this time, I truely think we are on the up trend from this point going forward.
-originally posted on agoracom
nice post..
Cantor Fitzgerald
March 28, 2014
Research Update
EVENT
Last night, we met with Yoram Cohen, General
Manager of ICL Africa. Recall, Mr. Cohan was
recently appointed to Allana’s Board in conjunction
with its announced strategic alliance with Israel
Chemicals (ICL-TA, Not Rated) involving financial
support, a take-or-pay offtake and technical
cooperation.
BOTTOM LINE
We come away from our meeting with further
conviction of the strength of Allana’s strategic
alliance and commitment from its partner. We
reiterate our BUY recommendation and
C$1.15 per share target price.
FOCUS POINTS
Establishing market leadership in Africa is a key
strategic focus for ICL. The potash opportunity in
Africa is large and steps are being taken now to
develop the market in Ethiopia, Kenya and
Tanzania so as to earmark as much production
from Allana’s project as possible to this region.
ICL selected Allana after substantial due diligence
of several projects in Africa concluding that this
project offered the most attractive profile including
low cost and political stability. ICL representatives
have since revisited Ethiopia, meeting with officials
and seeking ways to expedite project development.
ICL’s contribution to the project should not be
underestimated. The company is among the world
leaders in potash production, with particular
strength in the technical aspects of solar
evaporation and crystallization, as well as logistics
including trucking and distribution.
looks like the bottom is in
it's non-transferable..
nice article you posted.. explains alot of the 'pps problems' over here and how we're doing relatively. when the potash market does come back, i guarantee we have a front row seat on the ride.
it's not 'news'.. it's part of the original $25M agreement announced Feb 12
http://finance.yahoo.com/news/allana-potash-announces-strategic-alliance-222200759.html
Pursuant to the First Tranche, the Company issued to ICL 22,577,001 Units for gross proceeds of approximately $10.6 million.
Subject to receipt of shareholder and regulatory approvals, 30,614,488 Units at a price of $0.47 per Unit for gross proceeds of approximately $14.4 million, will be issued to ICL pursuant to the Second Tranche.
Yeah this company is just a shell now.. went dark right after the RS. I doubt that Madison Av office is still there. Maybe I'll pop in next time I'm over by grand central. Just out of curiosity,, I really only have a token amount of shares.
where do you think we need to be.. +$160 area??
scam with no dilution?? that doesn't add up
'Please contact Sameen Butt - sbutt@investor3.ca or by phone at (416) 363- 9694 if you have any questions.'
jeez.. that's a rough one
yeah, it's dead money but he has an order in
yeah they are!
i was expecting an offtake agreement by the end of the quarter.. this is so much more. we were all expecting some equity financing. it wasn't hidden by management that a percentage of the financing would be equity.
this is the kind of equity stakeholder you want! not some crappy financial services company that would sell you out for a double or worse.. short the s. out of you if it meant a profit. we have a partner here that is going to do really well with us. no worries about debt financing now (not that i was worried).
we're in a great position here.. let the flippers flip.. i'm considering doubling down
ICL's NR
ICL to Partner with Allana Potash to Develop Potash Mine in Ethiopia
http://online.wsj.com/article/PR-CO-20140213-906200.html
TEL AVIV, Israel, February 13, 2014 /PRNewswire/ --
- Project to provide potash for Ethiopia and Africa, enabling local farmers to increase their agricultural output and food -
- Due to its strategic location, the project will also provide ICL's customers in India and South East Asia with a new supply source -
- Development of a low cost potash source outside of Israel is in line with ICL's "Next Step Forward" growth strategy -
ICL (TASE:ICL), a global manufacturer of products based on specialty minerals that fulfill humanity's essential needs in the agriculture, food and engineered materials markets, today announced that it has entered into a strategic alliance with Allana Potash, a potash mining company whose shares are traded on the Toronto Stock Exchange. ICL will support Allana in its development of the Danakhil potash project located in the Dallol region of the Afar province of northeast Ethiopia. The feasibility study for the proposed mine indicates that it will produce approximately one million tons of potash annually within a period of five years from now.
ICL's strategic alliance with Allana comprises an investment by ICL in the amount of approximately US$23 million in units of Allana ("Units") at a price of approximately US$0.43 per Unit. Following the completion of its initial investment in Allana, ICL will hold approximately 16% of Allana's regular shares on a non-diluted basis, and the Company may increase its holding in Allana to approximately 37% upon its exercise of warrants that are part of the Units. Proceeds of the investment will be used by Allana to develop and advance the Danakhil mine project.
The alliance also includes a offtake agreement between the parties with respect to the Danakhil mine in which ICL will purchase and market the output of the mine. ICL will also provide technical assistance to Allana to develop and operate the Danakhil mine.
The alliance with Allana is in line with ICL's "Next Step Forward" strategy to broaden its sources of raw materials globally while reducing its production costs and focusing on growth-generating emerging markets which will lead the Company to significant growth over the next decade. ICL is a global producer and marketer of potash with potash mines in Israel, Spain and the UK. In 2013, the Company sold over 5 million tons of potash worldwide.
ICL views its investment in the development of attractive sources of raw materials worldwide as an important strategic objective, especially in light of its need to ensure additional alternatives when the time comes to extend the franchise to produce potash from the Dead Sea, which expires in 2030, and in light of the uncertainty regarding the business and regulatory environment in Israel. The planning and development process for industry, in general, and the potash industry, in particular, requires around 10 years and therefore ICL has begun to evaluate and develop alternatives.
Commenting on the transaction, Stefan Borgas, President and CEO of ICL, said, "We are pleased to enter into a strategic alliance with Allana to help develop its Danakhil potash project in Ethiopia. During our extensive due diligence, we were impressed by Ethiopia's people and the support of the Ethiopian government and its local authorities. The Danakhil mine will provide potash for Ethiopia and Africa, and, combined with ICL's agronomics fertilization know-how, will enable local farmers to increase agricultural output and food for the region. Our cooperation with Allana delivers a step in our previously announced 'Next Step Forward' strategy to broaden our sources of raw materials worldwide, as well as our intention to deepen and significantly increase our activities in emerging markets such as the African continent. The agricultural fertilizers market in Africa is evolving into one with the highest growth potential in the world. In addition, the location of the Danakhil mine will provide us with fast and easy access to the Indian Ocean which will enable us to even better serve our customers in India and South East Asia and their appetite to grow."
Farhad Abasov, President and CEO of Allana, added, "ICL possesses broad experience in, and knowledge of, the global potash market, as well as in the development of large scale potash projects. Likewise, Allana will benefit from ICL's existing global and regional marketing and distribution networks. Both Allana and ICL are committed to expanding fertilizer supply within Africa in support of the farming renaissance that is occurring on the continent. The strategic alliance with ICL is comprehensive and encompasses three major aspects that are critical to the success of a new potash project: financial support; a sales agreement; and technical cooperation."
Mr. Abasov concluded by saying, "We thank the people and governments of Ethiopia and Djibouti for having the foresight to work tirelessly towards this goal. We look forward to working with ICL and developing a world-class project that will supply potash to the fast growing African markets for many years to come. Danakhil is expected to be one of the world's lowest cost potash mines, and I am confident that our alliance with ICL will allow Allana to successfully achieve its operational and commercial targets."
The parties have entered into a definitive Share Purchase Agreement which calls for ICL's investment to be completed in two tranches, the first of which was closed as of today's date, and a second tranche which is subject to the receipt of approval by Allana's shareholders and other standard closing conditions. Each Unit issued to ICL consists of a common share of Allana, one and one half Series A Common Share purchase warrants, and one half of one Series B Common Share purchase warrant. Each warrant is exercisable into one Common Share for a period of 36 months from the date of issuance of the Warrant. The Series A Warrant is exercisable for a price of approximately US$0.50 per Common Share, and the Series B Warrant is exercisable for a price of approximately US$0.55 per Common Share.
In connection with its investment in Allana, ICL has appointed Yoram Cohen, General Manager of ICL Africa and a member of ICL Fertilizers' management team, to the Board of Directors of Allana. Mr. Cohen has served in several global level positions at ICL, including as Senior VP and CFO of ICL Specialty Fertilizers, and as VP, Business Development, of ICL's Fertilizers and Chemicals business unit. ICL may nominate a second director to Allana's board subject to its additional investment in Allana.
About ICL
ICL, a global manufacturer of products based on unique minerals, fulfills humanity's essential needs, primarily in three markets: agriculture, food and engineered materials. ICL produces approximately a third of the world's bromine, and is the sixth largest potash producer as well as the leading provider of pure phosphoric acid. It is a major manufacturer of specialty fertilizers and specialty phosphates, flame retardants and water treatment solutions. ICL's mining and manufacturing activities are located in Israel, Europe, the Americas and China, and are supported by global distribution and supply networks.
The agricultural products that ICL produce help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives ICL produces enable people to have greater access to more varied and higher quality food; ICL's water treatment products supply clean water to millions of people as well as industry around the world; and other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials.
ICL benefits from a number of unique advantages, including its vertically integrated activities and complementary and synergistic downstream operations for the production of unique end products; its balanced and varied product portfolio in growing markets; and its worldwide presence with proximity to major global markets in developing regions.
ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange (TASE: ICL). The company currently employs around 12,000 people worldwide, including around 5,000 in Israel, most of them in the Negev. ICL's sales in 2012 totaled $6.5 billion, 50% of which derived from production activities in Israel.
For more information, visit the company's website at http://www.icl-group.com
About Allana
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's shares trade on the Toronto Stock Exchange under the symbol "AAA".
Forward Looking Statement
This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group's markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management's projections are likely to change in light of market fluctuations, especially in ICL's manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.
Allana Potash Announces Strategic Alliance with ICL
http://www.allanapotash.com/s/News.asp?ReportID=622885
Toronto, Ontario, February 12, 2014 - Allana Potash Corp. (TSX: AAA) ("Allana" or the "Company") announces that it has secured a strategic alliance with ICL, one of the world's largest fertilizer producers, pursuant to which a wholly-owned subsidiary of ICL has entered into a definitive share purchase agreement (the "SPA") with Allana for an aggregate investment of $25 million in units of the Company ("Units") at a price of $0.47 per unit on a private placement basis (the "Offering") with the potential for a total investment of up to $84 million upon full exercise of the warrants comprising part of the Units. In addition, a wholly-owned subsidiary of ICL has entered into an offtake agreement (the "Offtake Agreement") with respect to the Company's Danakhil potash project in Ethiopia (the "Project"). The terms of the SPA also include the provision of technical assistance resources by ICL for the development and operation of the Project. The Unit issue price of $0.47 was determined at a 35% premium to the five day volume weighted average of Allana's market price on the TSX, and at a 45% premium to Allana's closing market price on the TSX, as of December 3, 2013, the date on which Allana and ICL commenced exclusive negotiations with respect to this transaction.
Farhad Abasov, President and CEO of Allana, commented "We are pleased about our strategic alliance with ICL. This is a significant and defining milestone in our Company's history, paving the path towards the transformation of Allana into a major, global potash producer. This strategic alliance is comprehensive and encompasses three major aspects that are critical to the success of a new potash project: 1) financial support; 2) a take-or-pay offtake; and 3) technical cooperation.
Mr. Abasov added, "ICL has broad experience in, and knowledge of, the global potash market, and in developing large scale potash projects. With ICL as our partner, Allana will benefit from ICL's proven potash production ability to accelerate our development and operational plans. At the same time, with ICL's purchase of our product, Allana will benefit from ICL's existing global and regional marketing and distribution networks. This wide-ranging alliance is transformative for Ethiopia and for East Africa. Both Allana and ICL are committed to expanding fertilizer supply within Africa in support of the farming renaissance that is occurring on the continent."
Mr. Abasov concluded by saying, "We thank the people and governments of Ethiopia and Djibouti for having the foresight to work tirelessly towards this goal with the Company. As agricultural production and fertilizer utilization are on the rise in Africa, I am pleased to introduce our new corporate vision of 'Potash for Africa First'. It is significant to note that both ICL and Allana share this vision for our planned potash production in Dallol. We look forward to working with ICL and developing a world-class project to supply potash to the fast growing African markets for many years to come. Once in production, Danakhil is expected to be one of the world's lowest cash cost potash projects, and I am confident that the alliance with ICL will allow Allana to successfully achieve the operational and commercial targets of the project."
Stefan Borgas, President and CEO of ICL, said, "We are pleased to enter into a strategic alliance with Allana to develop its Danakhil potash project in Ethiopia which will provide potash for Ethiopia and Africa - the market with the highest growth potential in the fertilizer world. Our cooperation with Allana highlights our previously announced strategy to broaden our sources of raw materials worldwide, as well as our intention to deepen and significantly increase our activities in emerging markets such as the African continent. The Danakhil project will allow ICL to add substantial value to Allana through the deployment of production technologies similar to Dead Sea Works. The location of the Danakhil mine will further enable ICL to even better serve our growing customer base in India and South East Asia".
The Project secured environmental approvals in May 2013 and a Mining License in October 2013 and, having gained the cooperation of several major development financing institutions and export credit agencies in mid 2013, the Company is proceeding with its Project financing activities together with ICL. The Project will also provide numerous opportunities for economic and social development for the Afar Region, Ethiopia and Djibouti and the Company will continue to develop its infrastructure and transportation programs in close cooperation with the respective governments.
The Offering
The SPA provides that the Offering shall be completed in two tranches, with the first tranche having closed on the date hereof (the "First Tranche") and the second tranche being subject to the receipt of approval by Allana's shareholders (the "Second Tranche") and other standard closing conditions. Each Unit issued pursuant to the Offering consists of a common share of the Company (a "Common Share"), one and one half Series A Common Share purchase warrants (the "Series A Warrants") and one half of one Series B Common Share purchase warrant (the "Series B Warrants", and collectively with the Series A Warrants, the "Warrants"). Each whole Warrant will be exercisable for one Common Share for a period of 36 months from issuance of the Warrant. Each whole Series A Warrant will be exercisable for a price of $0.54 per Common Share, and each whole Series B Warrant will be exercisable for a price of $0.60 per Common Share.
Pursuant to the First Tranche, the Company issued to ICL 22,577,001 Units for gross proceeds of approximately $10.6 million, following which ICL holds approximately 7.7% of the issued and outstanding Common Shares of Allana on a non-diluted basis and 19.99% of the issued and outstanding Common Shares of Allana on a partially diluted basis.
Subject to receipt of shareholder and regulatory approvals, 30,614,488 Units at a price of $0.47 per Unit for gross proceeds of approximately $14.4 million, will be issued to ICL pursuant to the Second Tranche. In addition, the Company may issue Units to Liberty Metals and Mining Holdings, LLC and/or IFC, in such amount as is required to be issued upon due exercise of their respective pre-emptive rights with respect to the Second Tranche.
The Company plans to use the proceeds from the Offering exclusively to fund the construction of the Project and for other general corporate and working capital purposes related to the advancement of the Project.
The transactions contemplated by the SPA were approved by the independent directors of Allana. As required by the Toronto Stock Exchange ("TSX"), the Company will call a special meeting of its shareholders to be held on or about March 28, 2014 to authorize the issuance of Units pursuant to the Second Tranche. Subject to the receipt of the required shareholder approval, closing of the Second Tranche is anticipated to occur shortly thereafter. Directors and officers of Allana holding an aggregate of 1.4% of the outstanding Common Shares have agreed to vote in favor of the issuance of the Units pursuant to the Second Tranche to ICL.
Effective today, in connection with the closing of the First Tranche, Mr. Yoram Cohen has been appointed to the Board of Directors of Allana. Mr. Cohen joined ICL in 1998 and has served in several global level positions at ICL. He is currently General Manager of ICL Africa and a member of ICL Fertilizers' management team. Previously, he was Senior VP and CFO of ICL Specialty Fertilizers and VP, Business Development, of ICL's Fertilizers and Chemicals business unit. Mr. Cohen has a BA in Economics and Statistics and a MBA from The Hebrew University in Jerusalem. In addition, subject to ICL's investment of an additional $15 million in Allana (for an aggregate investment of $40 million), ICL shall have the right to nominate a second director to Allana's board.
In addition to these director nomination rights, pursuant to the SPA, Allana has granted ICL additional ancillary rights as a part of the strategic alliance, as follows:
From and after the date hereof, and at any time after the date which is twelve months from the date hereof (the "Grace Period") provided ICL beneficially owns securities acquired from Allana representing 7.5% of the fully diluted Common Shares of Allana, ICL will have a right of first refusal on the direct or indirect disposition of Allana's interest in the Project.
Subject to the same minimum equity ownership condition following the Grace Period, ICL has been granted a pre-emptive right pursuant to which ICL has the right to participate in any equity financings of Allana up to the greater of (i) 30% of the aggregate amount of such equity financing and (ii) its then undiluted ownership of Allana Common Shares acquired from treasury (assuming the issuance of the Second Tranche).
ICL has also been granted prospectus qualification rights pursuant to a prospectus qualification rights agreement entered into in conjunction with the First Tranche.
The SPA also provides for the establishment of a technical committee pursuant to which ICL has agreed to provide technical support to the Project.
The Offering remains subject to final approval of the TSX. Closing of Second Tranche of the Offering is expected to occur on or before March 31, 2014 subject to receipt of shareholder approval. In accordance with the SPA, shareholder approval and closing of the Second Tranche must occur prior to April 14, 2014.
The Offtake
The parties have also entered into the Offtake Agreement pursuant to which ICL has agreed to purchase the entire production of the Project up to 1Mtpa with a take-or-pay commitment of ICL on a minimum of 80% of output from the Project. The Offtake Agreement include typical terms and conditions for product supply agreements for global sales and shipments and also provides allowances in time for production ramp-up while maintaining the minimum 80% take-or-pay commitment.
Credit Suisse Securities (Canada), Inc. acted as sole financial advisor to Allana with respect to the strategic alliance.
Admission on the AIM Market
Further to the Company's December 16, 2013 press release, due to the Company's focus on other corporate initiatives, including the ICL strategic alliance, Allana has elected not to pursue an AIM listing at this time.
Investor Webcast
An Investor webcast to review the ICL strategic alliance will be held at 8:30am EST tomorrow, Thursday, February 13, 2014. To participate in the webcast, please go to our website's homepage ( www.allanapotash.com) and register by using the link to the webcast registration page at least 10 minutes in advance of the scheduled start time.
About ICL
ICL, a global manufacturer of products based on unique minerals that fulfill humanity's essential needs, primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produce help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that we produce enable people to have greater access to more varied and higher quality food; ICL's water treatment products supply clean water to millions of people as well as industry around the world; and other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials. ICL benefits from a broad presence throughout the world and proximity to large markets, including in developing regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange (TASE: ICL). The company employs around 12,000 people worldwide, and its sales in 2012 totaled $6.5 billion. For more information, visit the company's website at www.icl-group.com
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 three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured and indicated Sylvinite mineral resources of 327.4 million tonnes of 28.3% KCl; and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts estimated measured and indicated Kainitite mineral resources of 1,150.5 million tonnes at 19.4% KCl, an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8%KCl; estimated measured and indicated Upper Carnallitite mineral resources of 411.3 million tonnes grading 17.3% KCl, estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured and indicated Lower Carnallitite mineral resources of 557.2 million tonnes of 9.2%KCl, and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana's Technical Report entitled "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 293,501,018 shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA".