Toronto-Allana Resources Inc. said Sept. 18 that it has acquired three mineral concessions in Ethiopia’s northeastern Danakil Depression totaling approximately 150 square kilometers. The project area is approximately 100 km from the Red Sea coast and 600 km via good roads from the deep water port of Djibouti. Allana says the deposit is well known, with mining having been carried out intermittently from the early 1900s. Mining companies currently working in the basin include BHP Billiton and Sainik Coal Mining, a leading Indian-based coal mining company. Allana and the property vendors have completed NI 43-101 compliant technical reports for the concessions. According to Allana, highlights of the property include: an inferred mineral resource of 105,200,000 mt of potash mineralization (sylvite and kainite) with a composite grade of 20.8 percent KCl; near-surface potash mineralization (within 50 meters); potential for solution or open-pit mining; potential to use low-cost geothermal and solar power; and both MOP and sulfate of potash production feasible. Allana has agreed to acquire the properties from three private companies in consideration for an aggregate of $2.5 million in cash payments over three years and the issuance of 4 million shares. The property will also be subject to a 3 percent NSR, of which 50 percent can be purchased for C$5 million. Allana, a publicly-traded corporation with a focus on the acquisition and development of potash assets internationally, recently completed the acquisition of Latin American Potash in Argentina. Allana has approximately 45 million shares outstanding, and trades on the TSX-Venture Exchange under the symbol “AAA.”
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