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Typical landscape of the Danakil depression, close to where Allana’s potash project is located.
Canadian junior miner Allana Potash Corp. (TSX:AAA) has agreed to be acquired by fertilizer giant Israel Chemicals Ltd. (ICL) after it failed to raise the capital it needed to remain as a standalone company.
The market reacted positively to the news as the stock was trading almost 44% higher at 47.5 Canadian cents in Toronto at 11:18 am
The $109.50 million takeover(or Cdn$137M), aims to speed up development of Allana’s promising Danakil project in northeast Ethiopia.
“Considering the generally challenging financial environment for junior mining companies, we would expect the short and long-term financing needs of Allana to include potentially significant dilution to Allana’s current shareholders,” Allana chief executive, Farhad Abasov, said in the statement.
ICL already owns 16.4% of Allana’s shares and the deal is expected to close by August 17.
Danakil project location.
4 Comments
Terrence
An alarming day for the world, when the Jews have control of such a large fertilizer deposit, vital for world food production
geosteff
Rubbish! Other companies in the world (especially the northern hemisphere) hold far larger resources than the Israelis.
rayban
USA the price sits at .38 USD . How we all feel about our past purchases of stock at .65 on down to .26 . Lots of shares sitting on book at .55 or so . I have been buying for 3 years and shall barely break even . Oh yah , buyout .
M&A oh yes so good . I shall follow the main folks wishs and not forget this sorry market and players soon . Flip side , YARA has the middle of this deposit by old map ? Done deal or not ? As well , the large blocks of shares at .60 USD held by major players .
EdT
Ya’all. If you can’t take the heat, stay out of the kitchen! You should all be rejoicing that you haven’t lost your shirts; and that a white knight (ICL) has stepped in to save your sorry asses.