The secrets of junior mining private equity risk managers

Up 103% since the start of the year stock in Allana Potash Corp, advancing a project in Ethiopia was trading steady on Thursday after the company announced it had intersected strong potash mineralization in an area not previously drilled at its 160 square km Dallol project in Ethopia. Listed on the TSX-Venture exchange Allana's East Africa project has the backing of the World Bank and most the latest announcement comes on the heels of a string of discoveries at its land position in Dalol, part of the Danakil Depression (pictured).

Vancouver's Mesa Exploration said on Tuesday that Utah state officials granted the company a 640-acre potash lease, sending its stock up 6.5% by the close of trade. Mesa announced the lease will be incorporated into its Whipsaw potash project in Grand County that now totals 18,608 acres or 29 square miles and where thick potash beds have been intersected in gas wells at depths between 3,300 and 4,200 feet.

Iron ore miner Vale announced plans to invest more than USD 6 billion in expanding its port, railway and potash production capacity to keep up with booming demand for raw materials in Brazil such as fertilizer, sugar and grains.

Potash Corporation of Saskatchewan reported record second-quarter earnings of $0.96 per share or $840 million—the second-highest total for any quarter in the company's history and 81 percent above the $0.53 per share ($480 million) earned in the same period last year. Despite volatility in commodity markets, Potash Corporation of Saskatchewan said that crop economics remained attractive throughout the second quarter, giving farmers the incentive to improve nutrient applications, which resulted in rising fertilizer demand and pricing.

Stocks of London-listed Sirius Minerals, the potash development group with assets in the US, Australia and the UK, jumped 5% on Wednesday after announcing financial results for the year to end March and raising £24.3 million. The company hopes to mine the UK’s only seam of potash and has started drilling in the North York Moors National Park where it has secured mineral rights for 631 sq km of land. Sirius said York Potash has the potential to turn it into a tier one potash producer.

Spot potash prices for the standard grade leaving the port of Vancouver rose from $445 per tonne in May to $481 in June and $490 in July and is up US$111 since December according to the Scotiabank Commodity Price Index out on Wednesday. Scotiabank also said Canpotex, the marketing agent for Western Canada's three potash producers, is virtually sold out for the third quarter this year and a third price increase this year of $30 to $40 is likely.

The chief of a Saskatchewan First Nation located near BHP Billiton Ltd.'s Jansen potash project is calling on the province to consult aboriginal communities in the region about the potential mine.

The value of mergers and acquisitions in the mining sector more than doubled to $96.3 billion in the first six months of the year and could top $200 billion for the whole of 2011 says a new research report. Canadian companies – both as acquirers and as the targets of buyers – dominated corporate finance activity in the first half shaking on more than a deal a day and at 325 deals accounting for almost two-thirds of all the metals and minerals transactions carried out around the world.

Grizzly Discoveries Inc. announced on Monday it has applied for a new metallic and industrial mineral permit in Alberta along the Saskatchewan border covering approximately 4,672 hectares to add to its existing land holdings of more than 2.4 million acres for its Alberta Potash Project. Stocks in the micro-cap company was steady at 70c on Monday following the news and is worth more than double what it was at the start of 2011. Apart from potash Grizzly is exploring for gold and base metals in British Columbia and diamonds in Alberta.