Allana purchased Nova for approx $1 per tonne, shares/cash combined. Current potash prices are in the $450 range. Would you consider that to be a good deal for Allana? When a 1M tonne / per year mine is built on Nova property, Allana will be able to repurchase those shares back within 3-5 yrs from cashflow and profits and still have a mine life of approx 30 yrs.
The Nova property from my perspective is not only a good financial deal for Allana, it's also an excellent strategic property to own, huge potach tonnage in the ground, strategic water requirements and allows Allana a much larger footprint in the basin. Allana surrounds Yara. There are only 2 players left in the basin. For approx $40 M, wouldn't you agree F.A., made an excellent strategic, financial purchase of Nova? Think 5-7 yrs out or less if someone decides the properties (with two 1M tonne producing mines) are too stragegic.