Allana Potash Project Update
TORONTO, ONTARIO--(Marketwired - Oct. 17, 2013) -Allana Potash Corp. (AAA.TO)(ALLRF) ("Allana" or the "Company") reports further progress on its key initiatives and provides notice of a change to its board of directors.
Contracting & Infrastructure
The Company is proceeding with the EPCM selection process with a number of very strong engineering firms participating and having visited the project site in September. In reviewing proposals, management's goal is to choose a company that can deliver on engineering and construction objectives in the most efficient manner. Management is also continuing to work to strengthen Allana's technical and project execution expertise.
Drafting is proceeding on the Company's Tadjoura potash terminal definitive lease and services agreement with Djibouti Ports and for completion of the Danakhil road connector segment with the Ethiopian authorities. Required infrastructure is in place, under construction or contracted (roads, port, power) and is expected to be completed in time to meet Allana's project plans.
Regulatory Approvals
Further to the grant of Allana's Large-Scale Mining Licence by the Ethiopian government on October 8, 2013 and following extensive financial, economic, social, health, safety and environmental review, including the approval in May 2013 of the Project's Environmental, Social and Health Impact Assessment (ESHIA) (see news release of October 9, 2013), Allana now has the required regulatory approvals to complete the development phase of the Danakhil Project and move directly to contracting, construction and operations.
Debt Financing Process
The Company and its group of lenders -- large Development Financing Institutions (DFIs) and Export Credit Agencies (ECAs) -- continue to work on advancing various technical and legal aspects of the entire process within the overall lenders' due diligence work program.
Offtake and Strategic Partnership Talks
The Company continues to advance talks on both offtake and strategic equity investment with a number of large fertilizer companies. With continued short-term uncertainty in the potash markets, interest in Allana's low-cost potash project remains strong and management is working with various potential partners with a view to maximizing value for shareholders.
Board Change
Diana Walters is stepping down as the representative of Liberty Metals & Mining Holdings, LLC ("LMM") from Allana's Board of Directors. Under the terms of LMM's existing investor rights agreement with Allana, LMM continues to have the right to designate one nominee for appointment or election to the board. Allana wishes to acknowledge the significant support provided to the Company by Ms. Walters and LMM since LMM's initial investment. Farhad Abasov, Allana's President and CEO commented, "We greatly appreciate the advice and guidance Diana has provided us in the last several years and wish her our best with LMM."
https://finance.yahoo.com/news/allana-potash-provides-project-announces-113000371.html