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Allana Potash Corp. (CVE:AAA) reports that the mineral exploration licenses for the three mineral concessions in Ethiopia’s northeastern Danakil Depression have been transferred to Allana with effect of July 22, 2011.
Allana Potash Corp. (TSXV:AAA) reports that the mineral exploration licenses for the three mineral concessions in Ethiopia’s northeastern Danakil Depression have been transferred to Allana with effect of July 22, 2011.
The press release is quoted as saying:
Allana agreed to acquire the properties pursuant to an option agreement in September 2008, as amended, entered into with SB Management Inc., Forbes & Manhattan Inc. and Ethio-Gibe Canada Mining PLC (“Ethio-Gibe”)(the “Agreement”). Pursuant to the Agreement, Allana had the option to acquire the Dallol Project in consideration of an aggregate of $2.5 million in cash payments over 3 years and the issuance of 4 million shares, which have now been paid/issued in full. SB Management Inc., Forbes & Manhattan, Inc. and Ethio-Gibe have retained a 3.0% net smelter return royalty on the property (the “NSR”). The Company has the option, exercisable at any time, to buyout 50% of the NSR (thereby reducing the NSR to 1.5%) for $5,000,000 (see news releases dated September 17, 2008 and February 9, 2009).
Allana Potash’s President and CEO, Farhad Abasov says:
“We are very pleased with the transfer of title having been completed, particularly in light of the recently announced dramatic increase in the potash resources at the Dallol Project (see news release dated June 20, 2011). Now that title has been formally transferred, Allana can focus on proceeding with its Feasibility Study and continuing to advance the Dallol Project towards production”.
Click here to access the entire news release.
Click here to access Allana Potash’s company profile.(TSXV:AAA)