TORONTO, ONTARIO--(Marketwire - March 3, 2010) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Allana Potash Corp. (TSX VENTURE:AAA) ("Allana" or "the Company"), is pleased to announce that in order to satisfy additional demand it has increased the size of its private placement, previously announced on March 2, 2010 (the "Offering"), to 14,442,500 units of the company (the "Units") at a price of $0.40 per Unit for gross proceeds of $5,777,000, on a private placement basis. Each Unit shall consist of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will be exercisable to purchase one Common Share of the Company for a period of 18 months from issuance at a price of $0.50.
The Offering is being placed by a syndicate of agents led by Wellington West Capital Markets Inc. and Dundee Securities Corporation, and including Loewen, Ondaatje, McCutcheon Limited.
Closing of the Offering is anticipated to occur on or about March 23, 2010 and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.
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 with NI 43-101-compliant Inferred Mineral Resource of over 100 million tonnes of potash mineralization (Sylvite and Kainite) with a composite grade of 20.8 % KCl (for details regarding the resource estimate, see News Release Sept. 17, 2008). Allana has approximately 98.1 million shares outstanding and trades on the TSX-Venture exchange under the symbol "AAA".
Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the technical information presented in this release.
Except for statements of historical fact relating to the Company, certain information contained herein constitutes ''forward-looking information'' under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms and use of proceeds of the Offering, the ability of the Company to complete the Offering, the impact of the Offering on the Company, mineral resource estimates and the assumptions and parameters underlying mineral resource estimates. 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 information is 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 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 information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE