Allana Potash: Funding interest in Ethiopia project tops C$600 million

By Lisa Kerner

Charlotte, N.C., March 5 - Allana Potash Corp. said it received nonbinding indications of interest totaling over C$600 million, exceeding the amount of debt financing needed for its Dallol (Ethiopia) potash project.

Preproduction work will continue through 2012, during which time Allana will work with its project financing advisor BNP Paribas, technical consultant Ercosplan and prospective lenders to refine the project's construction and operations in the ongoing feasibility study.

Technical and commercial commitments for the project are slated for completion by late 2012, with closing of the debt financing and start of construction expected in early 2013.

"This is a significant development in our financing activities which, along with our current cash on hand, continued financial support from our existing strategic investors and demonstrated ability to access the equity capital markets even in the midst of challenging market conditions, gives us confidence that the project will continue to be developed on schedule," president and chief executive officer Farhad Abasov said in a company news release.

Toronto-based Allana is a potash asset developer.

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