VANCOUVER, May 16, 2018 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) announces that it intends to effect a consolidation
of its common shares on the basis of one (1) new common share for every ten
(10) common shares outstanding effective as of May 18, 2018.
Encanto currently has 440,817,039 common shares outstanding and, following
the share consolidation on a ten (10) to one (1) basis, will have
approximately 44,081,704 common shares outstanding. No fractional common shares
will be issued and no cash will be paid in lieu of fractional post-consolidation common
shares but the number of common shares to be received by a
shareholder will be rounded down to the nearest whole common share in
the event that such shareholder would otherwise be entitled to receive a fractional common
share.
A letter of transmittal will be sent by mail to shareholders
advising that the share consolidation has taken effect and instructing
shareholders to surrender the certificates evidencing their common shares for
replacement certificates representing the number of common shares to which
they are entitled as a result of the consolidation. Until
surrendered, each certificate will be deemed for all purposes to
represent the number of common shares to which the holder
thereof is entitled as a result of the consolidation.
About Encanto Potash Corp.
Encanto Potash Corp. is a TSX Venture Exchange listed and 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, Encanto has secured a project land package which
totals approximately 61,000 largely contiguous acres. 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 and Probable KCI Reserves totaling 162 Mt grading
28% KCl (average) which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8
Mt of MOP. The PEA dated May 24, 2017 titled " NI 43-101 Technical Report on a Preliminary Economic
Assessment and Preliminary Feasibility Study of the Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada" summarizes an
alternative development option that supports primary and secondary mining of the Mineral Resources for 48 years at an annual
extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year off-take agreement
with the National Federation of Farmers' Procurement, Processing, and Retailing Cooperatives of India Ltd., (NACOF) registered
under the Ministry of Agriculture, Government of India to supply 5 million metric tons a year of
potash.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN INFORMATION SET FORTH IN THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS 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, RISKS ASSOCIATED WITH MINERAL EXPLORATION AND MINING ACTIVITIES, THE IMPACT OF GENERAL ECONOMIC
CONDITIONS, INDUSTRY CONDITIONS, DEPENDENCE UPON REGULATORY APPROVALS, THE UNCERTAINTY OF OBTAINING ADDITIONAL FINANCING, 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.
View original content: http://www.newswire.ca/en/releases/archive/May2018/16/c2750.html