Encanto Potash (TSX-V:EPO) stock is up 20% in two days after details of a possible deal with India's Rashtriya Chemicals and Fertilizers Ltd. (RCF) surfaced on a government website.
The Vancouver-based company is advancing a potash project in Saskatchewan that could produce up to 2.8 million tonnes of potash a year for the next 50 years.
Construction costs are pegged at $2.4 billion and the mine could start producing by 2017.
The proposed agreement with the Indian concern calls for an offtake agreement for 2 million tonnes of potash at an 8% discount to market price – worth roughly $736 million a year.