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UPDATE 1-Allana mulls multiple offers for Ethiopian project
October 28, 2009 / 12:06 PM / 8 years ago

UPDATE 1-Allana mulls multiple offers for Ethiopian project

* Says numerous parties interested in its potash project

* To pursue deal that provides most value to shareholders

TORONTO, Oct 28 (Reuters) - Allana Resources Inc AAA.V has received multiple unsolicited offers from strategic investors keen on partnering in its potash project in the Danakil Depression in northeastern Ethiopia, the company said on Wednesday.

The Canadian-listed potash explorer said management is evaluating the offers, all of which are believed to be more attractive than the previously announced memorandum of understanding (MoU) with a Chinese company.

In July, Allana said it had signed a MoU with a government-owned Chinese company that was interested in developing its Ethiopian potash project. Allana has so far not named the Chinese company.

Allana said it will pursue the transaction that it believes offers the greatest value to its shareholders and is in the best interests of the company.

Shares of the Canadian junior, which closed Tuesday at 21 Canadian cents a share, are up 600 percent year-to-date on the TSX Venture Exchange. (Reporting by Euan Rocha; editing by John Wallace)

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