TRADING SYMBOL: TSXV:EPO
VANCOUVER, Feb. 19, 2014 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO) (OTCQX: ENCTF) is pleased to announce that,
further to its news release dated February 13, 2014, it has closed its
private placement of 3,150,000 units at a price of $0.17 per unit for
gross proceeds of $535,500. Each unit consists of one common share and
one share purchase warrant, each warrant entitling the holder to
purchase one common share at $0.30 until August 18, 2015. The proceeds
from the private placement will be used for general working capital.
The Company is also pleased to announce that it has closed the short
term loan of $750,000 announced in its news release of February 13,
2014. The loan is for a term of 60 days maturing on April 20, 2014 and
bears interest at the rate of 15% per annum. The lender also received
warrants entitling it to purchase up to 1,000,000 common shares at a
price of $0.20 per share on or before February 19, 2015.
All securities issued under the private placement will have a four month
statutory hold period expiring June 19, 2014. In connection with the
private placement and loan, the Company has paid advisory fees of
$48,085 to Secutor Capital Management Corp.
Pursuant to the Company's Stock Option Plan, a total of 750,000
incentive stock options have been granted to employees and consultants
of the Company. The options are exercisable at a price of $0.20 per
share for a period of 10 years, subject to regulatory approval.
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded
Canadian resource company engaged in the development of potash
properties in the Province of Saskatchewan, Canada, the largest
producing potash region in the world. Through a joint venture agreement
with Muskowekwan Resources Ltd. ("MFN JV") on our flagship property,
Encanto has a project land package which totals approximately 61,000
largely contiguous acres. A Pre-Feasibility Study dated February 28
2013 titled "Encanto Potash Corp. Technical Report Summarizing the
Preliminary Feasibility Study for the Muskowekwan First Nations Home
Reserve Project in South Eastern Saskatchewan, Canada" confirms the
Proven & Probable KCI Reserves totaling 162 MMt grading 28% which
supports primary and secondary mining for over 50 years at an assumed
annual rate extraction rate of 2.8 million tonnes.
The Company has an interest in two additional potash properties in
Saskatchewan: 20% interest in the 55,000 acre Ochapowace/Chacachas
property and 100% interest in the 55,437 acre Spar property.
Encanto is currently exploring domestic & international strategic
partnerships for the financing, development and sale of potash
production from its MFN JV Property.
The technical content of this news release has been reviewed by James
Walchuck, a qualified person as defined by NI 43-101.
For additional information about Encanto Potash Corp., please visit the
Company's website at www.encantopotash.com or review the Company's documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "James Walchuck"
James Walchuck
President and CEO
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION
RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING
INFORMATION IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS.
SUCH RISKS AND OTHER FACTORS INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS
OF EXPLORATION ACTIVITIES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY
MARKETS, THE RISKS OF THE MINING INDUSTRY INCLUDING, WITHOUT
LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS IN OBTAINING
GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION OF
DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN
GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING INDUSTRY,
AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE
COMPANY'S FILINGS WITH THE CANADIAN SECURITIES ADMINISTRATORS
(AVAILABLE AT WWW.SEDAR.COM). FORWARD-LOOKING STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND
ON MANAGEMENT'S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE
STATEMENTS ARE MADE. SHOULD ONE OR MORE OF THESE RISKS AND
UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE
INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN
THE FORWARD-LOOKING INFORMATION CONTAINED HEREIN. THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING STATEMENTS IF THESE
ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER CIRCUMSTANCES
SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE LAW.
SOURCE Encanto Potash Corp.
