TSX-V: EPO
VANCOUVER, Aug. 1, 2018 /CNW/ - Encanto Potash Corp.
("Encanto") (TSX-V: EPO) and the Muskowekwan First Nation are very pleased to announce that they have engaged Hatch Engineering
("Hatch") for the next step in their plan towards the construction target of a significant potash mine in the 4th
Quarter 2019. With the financial support of the Government of Canada via funding
through Indigenous Services Canada (please refer to the Company's press release dated July 23,
2018), the Company is quickly moving forward with the upcoming engineering steps of the Muskowekwan Potash
Project.
Hatch will perform a value engineering analysis in efforts to lower the project's total Capex, with results expected in
4th Quarter 2018. Chief Operating Officer Richard Lively stated, "I have worked with
numerous projects both in Canada and globally and as a result of that practical experience in
design and operations, combined with what we know about the property geologically, I believe that there is substantial potential
that the Capex and Opex can be reduced."
Lively continued, "I have been involved with Hatch on other projects and feel very confident in having them join Encanto for
the Value Engineering study that will help define these cost reductions while adding value to our project." Hatch will be
completing this study to re-evaluate our projected costs and define our next step towards detailed design
engineering. Hatch has been granted a new patent for potash and mineral salt pond crystallization—the only filed patent
that has been validated to increase production over the "conventional wisdom" approach that is typically used today. This new
technology is anticipated to reduce costs and increase production.
Hatch has a demonstrated history of completing projects on time and on budget. Lively states, "In my experience working with
Hatch in the past, they cater to the clients specific needs and strive to lower costs and increase the quality of the project to
deliver true value for all stakeholders. Hatch has experience in many successful potash projects which instills our complete
confidence in them. We are very pleased to have Hatch on board and we look forward to having their potash expertise which
will guide us together through the next steps as we plan to develop the next generation of potash mines in Saskatchewan."
About Hatch
Whatever our clients envision, our teams can design and build. With over six decades of business and technical
experience in the mining, energy, and infrastructure sectors, we know your business and understand that your challenges are
changing rapidly. We respond quickly with solutions that are smarter, more efficient and innovative. We draw upon our 9,000
staff with experience in over 150 countries to challenge the status quo and create positive change for our clients, our
employees, and the communities we serve.
Our diverse teams combine vast engineering and business knowledge, working in partnership with our clients to develop market
strategies, manage and optimize production, develop new game-changing technologies, and design and deliver complex capital
projects.
We work closely with the communities in which we serve to ensure that our solutions optimize environmental protection,
economic prosperity, social justice, and cultural vibrancy. We want their businesses, ecosystems, and communities to thrive, both
now and into the future. http://www.hatch.com
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.
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LIMITED TO: RISKS RELATING TO VARIATIONS IN THE MINERAL CONTENT WITHIN THE MATERIAL IDENTIFIED AS MINERAL RESOURCES FROM THAT
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INFRASTRUCTURE IS BUILT DIFFERING FROM THAT PREDICTED, DEVELOPMENTS IN WORLD METALS MARKETS; RISKS RELATING TO FLUCTUATIONS IN
THE CANADIAN DOLLAR RELATIVE TO THE US DOLLAR; INCREASES IN THE ESTIMATED CAPITAL AND OPERATING COSTS OR UNANTICIPATED COSTS;
DIFFICULTIES ATTRACTING THE NECESSARY WORK FORCE; INCREASES IN FINANCING COSTS OR ADVERSE CHANGES TO THE TERMS OF AVAILABLE
FINANCING, IF ANY; TAX RATES OR ROYALTIES BEING GREATER THAN ASSUMED; CHANGES IN DEVELOPMENT OR MINING PLANS DUE TO CHANGES IN
LOGISTICAL, TECHNICAL OR OTHER FACTORS; CHANGES IN PROJECT PARAMETERS AS PLANS CONTINUE TO BE REFINED; RISKS RELATING TO RECEIPT
OF REGULATORY APPROVALS; DELAYS IN STAKEHOLDER NEGOTIATIONS; CHANGES IN REGULATIONS APPLYING TO THE DEVELOPMENT, OPERATION, AND
CLOSURE OF MINING OPERATIONS FROM WHAT CURRENTLY EXISTS; THE EFFECTS OF COMPETITION IN THE MARKETS IN WHICH ENCANTO OPERATES; AND
OPERATIONAL AND INFRASTRUCTURE RISKS. ALTHOUGH MANAGEMENT HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN FORWARD-LOOKING STATEMENTS, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS
NOT TO BE AS ANTICIPATED, ESTIMATED OR INTENDED. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE, AS
ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. ACCORDINGLY, READERS SHOULD
NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS. ENCANTO DISCLAIMS ANY OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS
CONTAINED HEREIN OR TO PUBLICLY ANNOUNCE THE RESULT OF ANY REVISIONS TO ANY SUCH STATEMENTS TO REFLECT FUTURE RESULTS, EXCEPT AS
REQUIRED BY APPLICABLE SECURITIES LAW. PLEASE REFER TO ENCANTO'S MOST RECENT FILINGS UNDER ITS PROFILE AT WWW.SEDAR.COM FOR FURTHER INFORMATION RESPECTING THE RISKS AFFECTING ENCANTO AND ITS
BUSINESS.
SOURCE Encanto Potash Corp.
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