Allana Potash Corp. and the Djibouti Port and Free Zones Authority Sign Memorandum of Understanding for Development of the Tadjourah Potash Terminal
TORONTO, ONTARIO -- (Marketwire) -- 09/11/12 -- Allana Potash Corp. (TSX: AAA)(OTCQX: ALLRF) ("Allana" or the "Company") is pleased to announce that the Company has signed a Memorandum of Understanding ("MOU") for the development and operation of Allana's potash terminal at the Tadjourah Port to be constructed by the Djibouti Port and Free Zones Authority ("DPFZA"). The MOU defines the terms and intent of the parties regarding:
-- specific allocation and use of lands within Tadjourah Port for Allana's
potash terminal;
-- integration of designs, construction plans and operating plans for
Allana's potash terminal;
-- services to be provided by DPFZA to Allana at the Tadjourah port; and
-- cooperation in advancing discussions and agreements with governments
regarding regulatory, import/export and other sovereign terms, and
completion of road and rail infrastructure serving Tadjourah port in
time to meet the operational needs of DPFZA and Allana.
Farhad Abasov, President and CEO of Allana Potash, stated: "Allana is pleased to have reached this next stage of cooperation with the Djibouti government in developing Africa's potash export potential. This MOU provides the basis for Allana's long-term operations in Djibouti and is an indication of our commitment to support the development of Djibouti's national infrastructure."
"Having Allana Potash as a major customer at our new Tadjourah bulk port is a further indication of the global strategic value of Djibouti's port expansions", responded Aboubaker Omar Hadi, Chairman and CEO of the Djibouti Port Authority, "The Tadjourah port and Allana potash terminal will help develop greater economic strength for Djibouti, particularly in the northern regions of our country. The bulk port at Tadjourah and the related transportation infrastructure being developed at the same time are elements essential to accelerating the success of resource projects in Djibouti, Ethiopia and nearby eastern African countries."
About Djibouti Port and Free Zone Authority
The Djibouti Ports & Free Zones Authority is the governing authority within the Djibouti Government that sets the rules, directives and overarching principles for the smooth and efficient running of the current and any future ports and free zones in Djibouti. It is also responsible for the enforcement and implementation of these principles and directives at every free zone in the country.
DPFZA is the sole authority in charge of the administration and the control of all the ports and free zones in Djibouti. The entity plays an instrumental role as the sole interface between the free zone companies and any other governmental bodies and comes under the direct authority of the Djibouti Presidential Office.
About Allana Potash Corp.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally with its major focus on a previously explored potash property in Ethiopia. Allana has secured financial support from two significant strategic investors: IFC, a member of World Bank Group, and Liberty Metals and Mining, a member of Liberty Mutual Group. Allana has Measured Sylvinite Mineral Resources of 60.8 million tonnes of 30.7% KCl; Indicated Sylvinite Mineral Resources of 110.6 million tonnes of 31.1% KCl, and Inferred Sylvinite Mineral Resources of 46.6 million tonnes grading 30.3% KCl; Measured Kainitite Mineral Resources of 319.4 million tonnes grading 20.2% KCl; Indicated Kainitite Mineral Resources of 382.1 million tonnes of 20.4% KCl and Inferred Kainitite Mineral Resources of 373.7 million tonnes grading 20.4% KCl; Measured Upper Carnallitite Mineral Resources of 49.9 million tonnes grading 17.5% KCl; Indicated Upper Carnallitite Mineral Resources of 105.6 million tonnes of 16.7% KCl, and Inferred Upper Carnallitite Mineral Resources of 89.7 million tonnes grading 13.8% KCl; Measured Lower Carnallitite Mineral Resources of 137.7 million tonnes grading 11.1% KCl; Indicated Lower Carnallitite Mineral Resources of 131.4 million tonnes of 10.6% KCl and Inferred Lower Carnallitite Mineral Resource of 78.2 million tonnes grading 8.5% KCl. The foregoing mineral resource estimates are as at April 27, 2012. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates refer to Allana's Technical Report entitled "Updated Resource Report for the Danakhil Potash Deposit, Afar State/Ethiopia" dated June 13, 2012, effective April 30, 2012 filed at www.sedar.com. Allana has approximately 228.5 million shares outstanding and trades on the Toronto Stock Exchange under the symbol "AAA".
Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the scientific and technical information presented in this release.
Forward-Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the effect of the MOU, the anticipated timing and benefits associated with respect to the development and operation of the proposed potash terminal; the estimation of mineral reserves and mineral resources; the timing and amount of estimated future exploration; costs of exploration; capital expenditures; success of exploration activities; permitting time lines and permitting; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. These risks and uncertainties include, but are not limited to, uncertainties with respect to mineral resource estimates, uncertainties with respect to permitting time lines and permitting, government regulation of mining operations, environmental risks; unanticipated reclamation expenses, title disputes or claims, risks inherent with conducting business in an African country such as civil unrest, bribery, security issues and the lack of respect for the rule of law and other risks discussed in Allana's latest annual information and other disclosure documents filed at www.sedar.com.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
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