Deal "Of A Lifetime"To be very clear...Allana closed a private placement for $1.55 per share with no warrants attached....the only WARRANTS issued were 1,035.000 broker full warrants at $1.55 each ....Liberty Metals increased its postion with a further 4 million shares and no warrants...This bought deal was strategic and did not dilute share holders with tons of warrants and give aways..
Anyone that thinks that more shares are not controlled by insiders and institutions should redo their math...my calculation shows that we are in a very enviable position to turn away a hostile take over if management says the offer is too low...and we plan on going into production...come back then and make another offer...
Some posters believed that the market would be saturated with the July 4th release of these 24 million shares....
The sky did not fall....and those that were fortunate enough to get the shares as part of the bought deal back in March have much higher asperations for their investment....The MM's brought the share price down to this level playing on retail investors fears that millions of shares would flood the market....it appears many of these shares have a 4 year horizon and not a 4 month horizon....hmmmm
So, now that this is a non issue...why would the share price remain at this level or will it?
a) We are fully financed for the next year....over $60 million in the bank less $20 million for the Bankable Feasibility Study, and 12 more drill holes for infill drilling and in the East.
b) 4 drill holes in the Lab from the initial drilling in the East and due out any day....
money in the bank for a "strategic land aquisition"
c) drilling commencing in Argentina by our neighbours Marifll and their new J/V partner.....if they hit...so do we...
always remember that Vale/Inco has over 1 billion tonnes of potash at their Rio Colorado Mine.....10 miles from us...
and they are spending over $4 billion dollars of capex on mine....we could end up having as much in Argentina as we do in Ethiopia...?
d) now that we meet all the requirements we can move to the TSX Big Board
e) Allana is fast tracking a PEA Preliminary Economic Assessment to determine our options for Open Pit Mine and/or Solution Mining our resource...remember, no where else in the world open pit mines MOP or SOP....how much will that be worth for share holders...yet to be determined...
f) Farhad has stated several times that he is having ongoing meetings with "Officials" to complete an Offtake Agreement...and that our potash will be going to India and China....and having meetings to secure a "Lead" bank to finance 60% of the capex for mine construction....Farhad would NOT be having these meetings if his intentions were not to move Allana into production and deliver shareholders the real value of Allana....period.
g) Farhad laid out his financing plans in the conference call...60% long term debt and 40% financing from IFC+Liberty, Offtake Agreement and Share Offer...
h) Infrastructure for roadways and railways have been confirmed and being built out over the next few years in Ethiolpia....dont think these questions were not asked and answered by Liberty Metals and the IFC before investing in Allana Potash....
i) No one has commented on the value of the Halite Layer (rock salt), the Mangenese we hit early on in the drilling, and the Gypsom layer?...If we open pit mine then there may be value to mine these layers as well for added value?
We have come along way in the last 12 months...and will come just as far over the next 12 months....just wait and see.
Karma
Mar 01, 2011
ALLANA POTASH CLOSES $38 MILLION FINANCING INCLUDING EXERCISE IN FULL OF THE OVER-ALLOTMENT OPTION
• $32,085,000 on an Underwritten Basis
• $6,235,259.40 to Liberty Metals & Mining on a Non-Brokered Basis
Toronto, Ontario -- Allana Potash Corp. (TSX-V: AAA) ("Allana" or "the Company"), is pleased to announce that it has closed its previously announced underwritten private placement financing of 20,700,000 common shares at $1.55 per share (the "Offering Price) for gross proceeds of $32,085,000 (the "Brokered Offering") and its previously announced non-brokered private placement of 4,022,748 common shares at the Offering Price with Liberty Metals & Mining Holdings, LLC ("LMM"), a subsidiary of Liberty Mutual Group and the Company's largest shareholder, who elected to exercise its participation rights for further gross proceeds of $6,235,259.40 (the "Non-Brokered Offering" and together with the Brokered Offering, the "Offering"). The Brokered Offering was led by Dundee Securities Ltd. as sole-bookrunner, together with Wellington West Capital Markets Inc. as co-lead underwriter and including Cormark Securities Inc. and Fraser Mackenzie Limited (the "Underwriters").
In connection with the Brokered Offering, the Company has paid the Underwriters a cash commission of $1,925,100 representing 6% of the gross proceeds raised and has issued the Underwriters 1,035,000 broker warrants, representing 5.0% of the number of common shares sold. Each broker warrant shall entitle the holder thereof to acquire one common share of the Company at a price of $1.55 until September 1, 2012.