First Tidal Acquisition Corp T.AAA

RE:How will the TROLLS try and beat this news down now?

[Fertiman]

Fertiman wrote: It will be very interesting....


Water - Aquifer stress tests.

“The first concern is the water supply. The lenders wanted comfort on the local aquifers that supplied the industrial water for our solution mining process. We have done aquifer stress tests on the flow and recharge rates. We needed to ascertain that the recharge rate was sufficient. On the water side we’ve had no surprises. The rates are quite good.”

Mine Optimization - Caverns

The second area in which the lenders were seeking comfort was on the issue of scalability. “We had done work on a 40 meter sized solution mining chamber for our initial Feasibility Study, but the commercial scale production chambers will be 80 meters in width. So we needed to demonstrate that this larger size was achievable. Our work confirmed that is was.”

Infastructure

As the work on the project continues Allana is also deeply involved in the creation of the infrastructure required to get the potash to market. Here the focus is on the construction of a port facility in the region of Tadjoura in Djibouti. The construction of the port is on schedule with completion set for 2016. As well, a road linking the port to Ethiopia is set for completion in 2015. These key infrastructure elements are being completed by the respective government agencies in charge in both Ethiopia and Djibouti.

 

“We will process the potash at a plant on our site.” explained Abasov, “Then it is trucked to the port. We’ll be building our own low-cost handling/storage facilities in the port itself.”

SOP PEA

At the same time as Allana is working on conventional potash, it is also in the midst of doing a Preliminary Economic Assessment (PEA) of the higher valued Sulphate of Potash(SOP) potential at the site. “The Kainitite-rich brine we will eventually be producing is unique because it will already have sulfide in it. We are investigating how best to process it and if it is possible to produce SOP from it at a very low cost.” said Abasov. Producing SOP is very attractive as its current price in China is $US600 per tonne as opposed to $300 to $350 a tonne for conventional potash (MOP).

Debt Package - Avoid Dillution

Corporately, Allana is looking to enhance its debt package. At this point it has development banks with significant experience in Ethiopia lined up to provide financing, but Abasov would like to bring on commercial banks as well. To that end Allana is in discussions with a number of large European banks. “We want to max up the debt side,” said Abasov, “because we want to avoid common shareholder dilution.”


https://business.financialpost.com/2014/12/04/allana-potash-developing-low-cost-potash-for-emerging-markets-in-africa/