Allana Expecting New Investors for Ethiopian Project

(HornTrade) – Allana Potash is expecting to acquire equity capital from new strategic investors for its project in Ethiopia, in the New Year.

The company expects that the positive preliminary economic assessment completed last month will result in developments in the coming year.

The PEA stated that a one million ton per annum mine at the Dankil project will cost 796 million US dollars to build. The capital cost figure makes the projects the lowest cost and possibly the highest return potash project in the world according to Farhad Abasov CEO of Allana.
“The PEA’s extremely positive results give Allana great confidence in advancing its feasibility study, which has been underway since August,” Abasov said in a statement.

Total operational costs including production and transportation were in line with the figures established by the PEA at 90.54 US dollars per ton including transportation to port Djibouti.

The PEA also concluded that a solution mining operation would be more profitable than conventional potash mining.

The PEA enables Allana to move forward in planning its project finances and continuing discussions with potential partners said Abasov.

Allana announced earlier this month that it has intersected to zones of strong potash mineralization on its potash concession in Ethiopia.

The continued performance seen at the concession is expected to enable Allana to upgrade mineral resources to the Measured and Indicated categories from that of Inferred according to Abasov. The company will also be able to add to the Inferred category he added.

Allana expects to begin production in 2014 according to Abasov.

Source: Proactive Investors

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