Allana gives update on Ethiopian project

Toronto-Allana Resources Inc. on Oct. 20 updated its previously announced acquisition of 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 has agreed to acquire the properties from three private companies ?Çô Forbes & Manhattan, Inc., SB Management, and Ethio-Gibe Canada Mining PLC ?Çô in consideration for an aggregate of $2.5 million in cash payments over 3 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. Both Forbes & Manhattan Inc. and SB Management are non-arms-length parties to the transaction as a result of Stan Bharti, an insider of each, being a 10 percent shareholder of Allana. Allana is a publicly-traded corporation with a focus on the acquisition and development of potash assets internationally, and 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.”