No Half Measures
Allana Potash Doubles Its Ethiopia Land Holdings
Kevin Michael Grace

Lest there be any doubt of its confidence in Ethiopia and its Dallol Potash Project, Allana Potash T.AAA has dispelled it by doubling the size of its property. On September 4, the company announced a buyout of Nova-Ethio Potash Corp, increasing thereby the size of its holdings in the Danakhil Depression from 154 square kilometres to 312 square kilometres. Richard Kelertas, Senior VP Corporate Development says the potential addition in potash and water resources is a “bargain.”

The agreement stipulates that Allana will pay Nova 12.7 million common shares and a further 35.6 million should Nova contain 29.2 million tonnes of potassium chloride within the sylvinite zone. (At press time, these 48.3 million shares are worth $28.7 million.) Should Nova contain more than 45 million tonnes of potassium chloride within the sylvinite zone, Allana will pay $7.5 million more, with a cap of 25% of Allana common shares.

Read more of this article about Allana Potash in Ethiopia.