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International Project Finance for Industrial Ores in Ethiopia

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International Business News indicates that Allana Potash Corp (“the Company”, or “Allana”) is exploring for potash on three contiguous licenses located in the Danakil Depression (“the Project”). The Danakil Depression is a desert area in north-east Ethiopia, close to the border with Eritrea.

The Report done by the Risk Management Consultant showed that potash mineralization in the Danakil Depression is well known and was mined intermittently from the early 1900s. The Project area covers part of the previously defined Musley potash deposit that was discovered between 1958 and 1967. The Musley deposit was at that time reported to contain a resource of 171.27 million tonnes grading 32.48 % KCl. Project area covers part of the Musley deposit and has a historic inferred potash resource of 105.2 million tonnes with a composite grade of 20.8 %. The resource potential of the entire Danakil Depression is significant and is believed to be in the order of a billion tonnes.

Allana has sought International Project Finance to help develop the Project. The Company recently announced strategic partnerships with two major investment houses. The Company is also seeking IFC’s engagement as a strategic partner to provide additional financing for the Project and help develop the Project in line with industry best practice in environmental and social sustainability.

The Project Finance Report indicates the Company plans to spend approximately C$22.0 million on exploration on the Construction Project over the next two years. The exploration program includes drilling and core sampling, preparation of a feasibility study and an Environmental and Social Impact Assessment (“ESIA”) report. Hindmarsh Finance (Hindmarsh LLC t/as) proposed an IFC investment of C$10.0 million is sufficient to complete the proposed work program.

The Construction Project is located in the Afar region of Ethiopia about 680 kilometers north of Addis Ababa, the national capital. The licenses cover an area of approximately 160 square kilometers. There are no major settlements within the Project area.

Mining