There will be considerable traffic on AAA board Monday, so I'm bumping this March 5th NR from Allana for newbies to get a feel for our Ethiopian project. The IC Potash (ICP.to) offtake with Global Conglomerate Yara is going to turn a lot of heads in the potash junior sector tomorrow morning imo.
Allana Receives Significant Indicative Interest from Prospective Lenders for Project Financing
TORONTO, ONTARIO -- (Marketwire) -- 03/05/12 -- Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") is pleased to announce that further to its press release on October 3, 2011, as part of its overall project financing strategy, initial discussions with various prospective lenders have been very positive and thus far Allana has received, in aggregate, non-binding indications of interest totaling over $600 million, exceeding the amount of debt financing Allana was initially contemplating to utilize to finance construction of its Dallol potash project (the "Project"). As a result, management is pleased that its targeted capital structure for the Project has thus far been well-received by lenders. Allana intends to continue working with its project financing advisor BNP Paribas, technical consultant ERCOSPLAN and prospective lenders as the necessary elements of the Project's construction and operations are refined in the ongoing feasibility study, ESIA and pre-production work through 2012. Allana expects the technical and commercial commitments for the Project to be completed by late 2012, thereby allowing for the closing of the project debt financing and start of construction in early 2013.
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Farhad Abasov, President and CEO, commented: "Allana is very encouraged by the formal expressions of interest from various propsective lenders consulted to date. We believe such indicative support underscores the technical merit of our project, their confidence in Ethiopia and the robust projected credit metrics of the Project which can support our targeted amount of project debt financing thereby increasing the potential returns to Allana shareholders. This is a significant development in our financing activities which, along with our current cash on hand, continued financial support from our existing strategic investors and demonstrated ability to access the equity capital markets even in the midst of challenging market conditions, gives us confidence that the Project will continue to be developed on schedule."
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About Allana Potash Corp.
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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% KCl, 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. The foregoing mineral resource estimates are as at June 13, 2011 and are set out in the Company's NI 43-101 compliant Technical Report entitled "Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 24, 2011 filed on SEDAR. Allana has approximately 222,607,557 million shares outstanding and trades on the Toronto Stock Exchange under the symbol "AAA".
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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, amounts and estimated timeline of the development of the project financing; the ability of the Company to secure the required funding with respect to the Project; the anticipated timeline with respect to the development and construction timeline with respect to the Project; 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 causeresults 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. Contacts: Investor Cubed 647 258 3310info@investor3.ca