March 5, 2012 / 1:07 PM / in 6 years

UPDATE 1-Allana Potash says lenders keen on funding Ethiopia project

March 5 (Reuters) - Canada’s Allana Potash Corp said lenders have indicated their interest in pumping in more than C$600 million for the construction of its Ethiopia potash project, exceeding the amount of debt financing it was originally contemplating.

The potash explorer said initial discussions with various prospective lenders “have been very positive” and that it expects to receive financial commitments for the project by late 2012, with construction slated to start in early 2013.

Last October, Allana Potash appointed investment bank BNP Paribas as financial adviser for the debt financing.

In June, the company said potassium chloride reserves at Ethiopia’s Danakil Depression, where the Dallol project is currently underway, had grown to 673 million tonnes of measured and indicated resources.

About 90 percent of potash produced is used as fertilizer, known as potassium chloride.

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