TORONTO, ONTARIO--(Marketwired - April 29, 2013) - Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) ("Allana" or the "Company") announces its intention to make a Normal Course Issuer Bid ("NCIB"), subject to TSX ("Exchange") approval, to buy back its common shares through the facilities of the Exchange.
The maximum number of common shares that may be purchased for cancellation pursuant to the NCIB is that number of common shares that represents 10% of the common shares in the public float. Based on the 235,725,648 common shares in the public float as at April 26, 2013, the maximum number of shares to be cancelled would be 23,572,564. Allana notes that the number of its shares in the public float is less than the 276,454,501 total basic issued and outstanding Allana common shares as of April 26, 2013, because the public float number does not include common shares held by Allana insiders. Daily purchases will be limited to 77,591 common shares other than block purchase exceptions. The actual number of common shares that would be purchased, if any, and the timing of such purchases will be determined by Allana considering market conditions, stock prices, its cash position, and other factors. Allana made a previous NCIB, that terminated effective April 17, 2013, pursuant to which Allana purchased 1,719,400 securities at a weighted average price per security of $0.51.
The Board of Directors of Allana believes that the underlying value of the Company is not reflected in the current market price of its common shares, and may not be so reflected at certain times during the course of the NCIB, and has thus concluded that the repurchase of common shares pursuant to the proposed NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of Allana shareholders.
Purchases under the NCIB are permitted to commence on May 1, 2013 and will terminate on April 30, 2014 or the date upon which the maximum number of common shares have been purchased by Allana pursuant to the NCIB. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by Allana under the NCIB. Allana intends that any shares acquired pursuant to the NCIB will be cancelled.
Any purchases made pursuant to the NCIB will be made in accordance with the rules of the TSX and will be made at the market price of the common shares at the time of the acquisition. Allana will make no purchases of common shares other than open market purchases that may be made during the period that the NCIB is outstanding.
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 and indicated Sylvinite resources as at February 2, 2013 of 327.42 million tonnes of 28.31% KCl; and inferred Sylvinite resource of 90.76 million tonnes grading 27.80% KCl, (see Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013). In addition, the Danakhil Projects hosts measured and indicated Kainitite resources of 701.55 million tonnes at 20.26% KCl, inferred Kainitite resource of 373.71 million tonnes of 20.35% KCl; measured and indicated Upper Carnallitite resources of 155.54 million tonnes grading 16.9% KCl, inferred Upper Carnallitite resource of 89.7 million tonnes of 13.8% KCl; measured and indicated Lower Carnallitite resources of 269.10 million tonnes of 10.86% KCl, inferred Lower Carnallitite resource of 78.2 million tonnes grading 8.5% KCl. The foregoing mineral resource estimates with respect to Kainitite and Carnallitite 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 and the Allana's Technical Report entitled "Summary of the Feasibility Study for a Solution Mine on the ALLANA Potash Project, Danakhil Depression, Afar State, Ethiopia" dated March 19, 2013, effective February 4, 2013. filed at
www.sedar.com. Allana has approximately 276.5 million shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA".
Forward-Looking Statement
Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. 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. 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.
Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person for the purposes of the Feasibility Study and has reviewed and approved the technical information presented in this release.