News
TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Allana Potash Corp. (TSX:AAA.TO - News) ("Allana" or "the Company"), is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Dundee Securities Ltd., and including National Bank Financial Inc., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., and Fraser Mackenzie Limited (the "Underwriters"), to purchase 25,000,000 common shares of the Company (the "Common Shares") at a price of
.80 per Common Share for gross proceeds of $20,000,000 on a bought deal basis (the "Offering").
The Company has also granted the Underwriters an over-allotment option to increase the size of the Offering by up to an additional 3,750,000 Common Shares, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering. If the over-allotment option is exercised in full, the aggregate gross proceeds raised will be $23,000,000.
The net proceeds from the Offering will be used for completion of a definitive feasibility study on the Company's Dallol Potash Project and for working capital and general corporate purposes.