Ethiopian Potash, FED.v $1.16
Posted: Tuesday Mar 29 4:16:19PM 2011
Ethiopian Potash recently started trading on the Venture. http://www.ethiopianpotash.com/ http://www.ethiopianpotash.com/EP_Presentation.pdf shares outstanding 104 million FD share count 142 million Similar land holdings to Allana Potash with market cap around 300 million. FED has about 1/2 the market cap. Drilling to start in Q3 I sold 1/2 my remaining AAA.v and bought FED.v at .91 with part of the proceeds. Also found out there is a warrant for FED. Terms of the warrant are .75 strike price with 18 months from now maturity. FED.wt.v closed at .55 today so there is a premium but may pick up some because of leverage. This is a cheaper version of Allana. Shallower depths of potash mineralization give them the choice to either open pit mine it or use solution mining. Same desert as AAA.v so can use evaporation ponds to reduce costs. Potash mining in Canada is more expensive because they have to use underground mining to extract the potash. Open pit would be cheaper.