Allana Potash Corp. (CVE:AAA) said Wednesday it has closed its previously announced private placement financing with the IFC, a member of the World Bank, and with the company's largest shareholder, Liberty Mutual Group, for total proceeds of $11.9 million.
The Toronto-based potash explorer, with assets in Ethiopia, sold 6.25 million units to the IFC, and 1.19 million units to Liberty Mutual. Each unit consisted of one common share of Allana Potash, and one half of one share purchase warrant.
"We are delighted that the IFC board has made an investment in Allana Potash at this crucial juncture of our project development," said president and CEO Farhad Abasov.
"This support, from one of the largest global multilateral financing organizations, comes at a time when Allana's potash project also is getting significant infrastructure support from the Ethiopian government."
IFC is the largest global development organization focused on the private sector in developing countries. The institution provides financing to help businesses employ more people and supply essential services.
Allana plans to use the new funds to fund a drilling program and feasibility study for its main asset, the Ethiopian potash property, which the company believes has the potential to become one of the most significant industrial projects in the country.
The previously explored property has inferred mineral resources of 105.2 million tonnes, with a composite grade of 20.8 % KCl.