Allana Potash (CVE: AAA) said Tuesday that it has acquired mineral exploration licenses for three mineral concessions to its Danakhil Potash Project, in Ethiopia.
The property rests in Ethiopia’s northeastern Danakil depression totalling 150 square kilometres.
Allana acquired the property in Sept. 17, 2008 from three private companies for $2.5 million in cash payments in a span of three years and four million shares, which have now been paid.
SB Management Inc., Forbes & Manhattan, Inc. and Ethio-Gibe have retained a 3% net smelter return royalty on the property.
The company, which is engaged in the exploration of potash, has the option to buyout 50% of the net smelter royalty thus reducing it to 1.5%, for $5 million.
At the time of entering the agreement, both Forbes & Manhattan Inc. and SB Management Inc. were non-arms-length parties to the transaction due to each being a 10% shareholder of Allana.
Allana said this shareholding has been subsequently diluted and both Forbes & Manhattan Inc. and SB Management Inc. are no longer non-arms length to Allana.
"We are pleased with the transfer of title having been completed, particularly in light of the recently announced dramatic increase in the potash resources at the Dallol Project,” said Allana officials.
“Now that title has been formally transferred, Allana can focus on proceeding with its feasibility study and continuing to advance the Dallol Project towards production."