Allana gets the cash to explore more Ethiopian potash

With $12.4 million in its pocket Allana Potash (AAA-V) is set to take its potash play in Ethiopia to the next level.

The company managed to close a private placement for 24.3 million common shares at a price of 51¢ per share — a 4% premium to the twenty day volume weighted average price of its shares.

That’s enough capital, Allana says, to fully finance its Dallol potash project through to feasibility.

On the other side of the placement is Liberty Metals & Mining Holding (LMM) – a subsidiary of Liberty Mutual Group. Allana described LMM as “a long-term investor” that is committed to helping the company when, and if, it reaches the construction stage.

With its latest purchase LMM now holds 17% of Allana.

The financing came with the stipulation that LMM could elect one member to Allana’s board and that person has been named as LMM’s president Diana Walters.

“We continue to receive considerable interest from various organizations regarding our Ethiopian potash project and we are free to continue these discussions from a strong position, knowing that we are well financed through the completion of a bankable feasibility study,” Farhad Abasov, President and CEO of Allana said in a statement.

Dalol covers 150 sq. km in Ethiopia’s Danakhil evaporate basin and has an inferred resource of 70.3 million tonnes of kainitite mineralization grading 61.7 % kainite and 30.3 million tonnes of sylvinite resource grading 25.4 % sylvite.

Combined the site hosts 105,200,000 tonnes with a composite grade of 20.8 % KCl.

In Toronto on Dec. 1 the company’s shares were up 5% or 3¢ to 59¢ on 1.93 million shares traded. Over the last 52-week period its share price has moved between 26¢ and 61¢.