Future good for LongsSeptember 27th, 2011
TORONTO (miningweekly.com) – Shares in Allana Potash charged 12% higher onthe TSX after the company, which has a project in Ethiopia, said it adopted ashareholders rights planand was talking to “various strategic parties”.
Allana added it was not responding to any specific potential take-over bid inadopting the poison pill.
A shareholder rights plan allows a company to issue cheap new equity in theevent of a hostile take-over bid, making an unwanted buyout prohibitivelyexpensive.
Allana’s Dallol project is oneof the most advanced potash assets in Ethiopia.
The company hopes to produce around one-million tons yearly of the cropnutrient by late 2014, which it could expand in the future.
A feasibility study for the project is due in the third quarter of 2012.
Liberty Mutual Group and the International Finance Corp. are the two biggestowners of Allana.
Shares in the junior were changing hands for C
.97 in Toronto by14:48.
Edited by: Creamer MediaReporter