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Allana Potash Engages AMEC to Complete Front End Engineering and Design Studies on Danakhil Project

12.08.2014  |  Marketwired
TORONTO, ONTARIO -- (Marketwired - Aug 12, 2014) - Allana Potash Corp. (TSX:AAA) ("Allana" or the "Company") is pleased to announce that it has engaged AMEC Americas Limited ("AMEC") to complete Front End Engineering and Design (FEED) on its one million tonne per year MOP Danakhil Potash Project in Ethiopia as preparatory work in anticipation of the completion of project financing and expected start of construction. This work will be undertaken primarily by AMEC's Saskatoon office and is estimated to take approximately six months to complete. AMEC is an international engineering and project management company to the world's natural resources industries. AMEC has extensive experience in all aspects of the potash industry and related infrastructure.

The AMEC team will provide FEED services in support of the Danakhil Project and will cover the following facilities:
  • Process and process, maintenance and service buildings
  • Conveyance to and from the ponds
  • Product storage (wet and dry)
  • Truck loading
  • Power generation and fuel storage
  • General roads and other project infrastructure
  • Temporary and permanent works camps
  • Port facilities including: truck unloading, product storage, ship loader facilities integration


During the FEED engineering phase AMEC will also undertake the following:
  • Prepare the Project Management Plan (PMP) including a Work Breakdown Schedule (WBS) and definition of supply and construction scopes and packages.
  • Develop a resource-loaded Level 3 project engineering, procurement/contracting and construction schedule, with detailed estimates of construction staffing requirements
  • Prepare principal design documents such as design criteria, flow sheets, P&IDs, single line diagrams, site plans, and general arrangements, in preparation for final detailed engineering and construction documentation
  • Complete civil, concrete and steel materials take-offs (MTOs) based on 3D modeling
  • Complete trade-off and optimization studies related to certain process components, modularization, power supply, materials movement and layout options
  • Develop the procurement and construction contracting plan, completing the list of qualified prospective suppliers and contractors
  • Initiate procurement with formal Requests for Quotation (RFQ) for long lead items and items required to be rough set as structural steel is erected and modules configured

Farhad Abasov, President and CEO of Allana, commented, "We are extremely pleased to have engaged AMEC to complete the FEED portion of the EPCM work for our Danakhil Potash Project. AMEC brings a wealth of experience in the potash industry including process design, solution mining and construction management to the operation, which we believe will advance our project in preparation for the construction phase. We look forward to working with AMEC to optimize and finalize the project design and advance the project to the next level. The initiation of the FEED work is a first for the potash industry in Ethiopia and represents another milestone accomplishment for Allana and the government of Ethiopia. Allana remains committed to developing the Danakhil Project and the securing the FEED work with a major engineering firm such as AMEC represents a significant achievement for the project."


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 its potash property in Ethiopia. Allana has secured financial support from three significant strategic investors: ICL, one of the world's largest potash producers, IFC, a member of World Bank Group, and LMM, a member of Liberty Mutual Group. Allana has estimated measured Sylvinite mineral resources of 115.3 million tonnes of 27.8% KCl; indicated Sylvinite mineral resources of 212.1 million tonnes of 28.6% KCl, and an estimated inferred Sylvinite mineral resource of 90.8 million tonnes grading 27.8% KCl, In addition, the Project hosts measured Kainitite mineral resources of 552.3 million tonnes at 19.4% KCl, indicated Kainitite mineral resources of 598.2 million tonnes of 19.5% KCl and an estimated inferred Kainitite mineral resource of 481.8 million tonnes of 19.8% KCl; estimated measured Upper Carnallitite mineral resources of 121.5 million tonnes grading 17.5% KCl, estimated indicated Upper Carnallitite mineral resources of 289.8 million tonnes of 17.2% KCl and estimated inferred Upper Carnallitite mineral resources of 175.5 million tonnes of 16.5% KCl; estimated measured Lower Carnallitite mineral resources of 235.0 million tonnes of 9.7%KCl, estimated indicated Lower Carnallitite mineral resources of 322.2 million tonnes of 8.9% KCl and estimated inferred Lower Carnallitite mineral resources of 369.3 million tonnes grading 7.7% KCl. The foregoing mineral resource estimates are as at April 17, 2013. For more information with respect to the data verification procedures undertaken and the key assumptions, parameters and risks associated with the foregoing estimates, refer to Allana's Technical Report entitled "Resource Update for the Danakhil Potash Deposit, Danakhil Depression, Afar State, Ethiopia" dated effective April 17, 2013 filed under the Company's SEDAR profile at www.sedar.com on August 7, 2013.Allana has approximately 325.2 million common shares outstanding. Allana trades on the Toronto Stock Exchange under the symbol "AAA". For more information, please visit the Company's website at www.allanapotash.com.

Dr. Peter J. MacLean, Ph.D., P. Geo., Allana's Senior VP Exploration, is the Company's designated Qualified Person and has reviewed and approved the technical information presented in this release.


Forward-Looking Statement: Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. 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". Statements with respect to the impact of the engagement on the Company and the timing of the completion of the work are forward-looking statements. Forward-looking statements are based on the opinions, assumptions 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 statements or forward-looking information. Such risks are discussed in the risk factors sections of our latest annual information form, our technical reports and other continuous disclosure documents filed from time to time at www.sedar.com. 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 statements or 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 statements 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 statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.



Contact

Allana Potash Corp.
Richard Kelertas, Senior Vice President, Corporate Development
514 717 6256
rkelertas@allanapotash.com
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