Allana Potash Corp. (TSX:AAA,OTCQX:ALLRF) entered into a merger agreement to acquire all of the issued and outstanding common shares of Nova-Ethio Potash Corporation, which indirectly holds a 100% interest in a strategically located potash license adjacent to the Company’s potash project in the Danakhil Depression in Ethiopia.
The Nova exploration license is approximately 154 km2 and is located adjacent to the western and southern boundaries of the Allana license (see Fig. 1). The Nova license also incorporates extensions of the alluvial fans and potential aquifers present on the western portion of the Allana license. Coupled with Allana’s land position in its adjacent claims, upon closing of the Transaction, Allana would control approximately 312km2 of the centre of the potash basin in the Dallol area.
Allana Potash President and CEO Farhad Abasov said:
Allana’s Board of Directors and its management are very excited to have entered into the agreement to acquire Nova and the Nova license. It is expected that this significant adjacent property will give Allana additional strategic ground to augment our current land position and add potential shallow potash resources. Allana will mobilize drilling immediately to evaluate the potential of extensions of the potash deposit identified by Allana on its main license block and to update our potash and water resource estimates. The completion of the acquisition of the Nova Property will complement our ongoing development plans and confirms our commitment to developing the potash resources in the district through both exploration and consolidation.