Allana will use the proceeds of the investment to develop and advance the Danakhil project. The feasibility study for the proposed mine indicates that it will produce approximately 1 million mt/y of muriate of potash via solution mining/ solar evaporation within a period of five years.

The companies have entered into an off-take agreement that calls for ICL to purchase the entire production of the Danakhil project up to 1 million mt/y, with a take-or-pay commitment by ICL on a minimum of 80% of the output of the project. ICL will also provide technical assistance to Allana to develop and operate the mine.

Allana is a Canadian company, headquartered in Toronto and listed on the Toronto Stock Exchange.

ICL is a public company whose shares are traded on the Tel Aviv Stock Exchange. The company is one of the world’s largest fertilizer producers, with potash mines in Israel, Spain and the United Kingdom. In 2013, ICL sold more than 5 million mt of potash worldwide.

Commenting on the Allana/ICL strategic alliance, Stefan Borgas, president and CEO of ICL, said, “The Danakhil mine will provide potash for Ethiopia and Africa, and, combined with ICL’s agronomics fertilization know-how, will enable local farmers to increase agricultural output and food for the region... The agricultural fertilizers market in Africa is evolving into one with the highest growth potential in the world. In addition, the location of the Danakhil mine will provide us with fast and easy access to the Indian Ocean, which will enable us to even better serve our customers in India and Southeast Asia and their appetite to grow.”