Encanto Potash Corp V.EPO.H

Leo provided 6.5 Million for drilling...

[eztwo1]

EPO will likely provide  Leo  with the 26,000,000 shares to get back the 51% interest.  Perhaps some smaller percentage can be negotiated. It should be remembered that these results were paid for with Leo's money; otherwise, there would not be much exploration to begin with.

"LEO will also provide funding to Encanto. Based on the LOI, LEO will provide $6.5 million
to Encanto, to be spent on the properties by December 29, 2009, in return for a 51% interest
in the properties."

With Leo's needs re: African oil interests and the huge sums required to be paid by Leo to maintain its interests there, I doubt that Leo will be providing any more  money to this potash deal.

But, and this is important, Leo has stated that it likes Endeavour Financials relationship with Encanto.  It seems EPO will have access to funds to move along the exploration, etc.  There has been selling into the announcement, and that should have been expected.  it could be a long process, but so many short term possibilities exist that buying now could be a great opportunity. (e.g. the Chinese rumour mentioned on Leo board may have something to it.)

The huge selling volume in Jan. caught my interest, but management didn't get deals with at least 7 First Nation groups for nothing. It really is just starting and shares seem cheap.  Lots of negotiations are very likely continuing behind the scenes.