Seeking Alpha: Allana Potash Offers Substantial Potential Rewards For Significant Risk

Junior gold miners are common enough and those investors who follow the mining sector closely are probably familiar with other juniors in minerals like copper. Junior potash miners are not nearly so common, though, as potash mining has historically been dominated by the likes of Potash Corp (POT), Uralkali, and Mosaic (MOS). Canada's Allana Potash (OTCPK:ALLRF) (AAA.TO) is looking to shake that up a bit, though, as the company hopes to move forward with a low-cost asset in northeastern Ethiopia.

I suspect that readers are bombarded with enough warnings about risk that they gradually become immune to them. I have to note, though, that Allana is a great deal riskier than average. This company's market cap is just over $100 million and the company is going to need to raise substantial sums of capital to turn its ambitions into reality. Although Allana's ADR shares carry the dreaded "F", the liquidity is actually pretty good (though still less than 20% of the Canadian shares).

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Allana Potash Offers Substantial Potential Rewards For Significant Risk