Allana Resources Inc. announce that the Company has completed its previously announced Strategic Investment with China Minerals United Management Ltd. (see News Release dated November 4, 2009) by way of private placement financing of Common Shares of the Corporation for gross proceeds of $2,000,000 million through the issuance of 8,000,000 Common Shares at a price of $0.25 per Common Share (the “Offering Price”).
The net proceeds of the financing will be used to fund exploration and development of Allana’s potash project in Ethiopia and for general corporate and working capital purposes.
The common shares are subject to resale restrictions that expire on March 10, 2010. In connection with the financing, the Corporation has paid finders fees in the form of a cash commission totaling $120,000.
Allana is a publicly traded corporation with a focus on the acquisition and development of potash assets internationally and recently optioned 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 (see News Release Sept. 17, 2008). Allana has approximately 89.3 million shares outstanding and trades on the TSX-Venture exchange under the symbol “AAA”.