TRADING SYMBOL: TSXV:EPO
VANCOUVER,
Nov. 28, 2012 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) is
pleased to announce the completion of an aggregate $2.5 million principal amount 5% secured
convertible debenture. The principal amount of the debenture
is convertible in whole or in part at the option of the subscriber
into common shares of the Company at a price of $0.25 per common share until November 28, 2014.
Provided the weighted average trading price of
Encanto's common shares are in excess of $0.50 for 20 consecutive days, the Company may
prepay the instrument in whole or in part prior to the maturity
date by providing 60 days written notice to the subscriber. A
finders' fee of 5% of the gross proceeds was paid in connection
with the financing. The Company intends to use the
proceeds to further develop the Pre-Feasibility Study on the
Muskowekwan First Nation property ("PFS") and provide general
working capital for the Company. The securities issued in
connection with this Offering are subject to a 4-month "hold
period" as prescribed by the TSX Venture Exchange and applicable
securities laws expiring March 29,
2013.
The investor is a prominent Kuwaiti businessman
who has significant investments in the automotive, financial and
natural resource sectors.
Encanto expects the delivery of the PFS in early
Q1 of 2013. Encanto anticipates the additional 3D Seismic
Program on the Muskowekwan TLE lands will be completed in early
December 2012. North Rim
Exploration Ltd. will be recalculating an upgraded resource
estimate with this additional data. This new resource
estimate is anticipated in early 2013. The Company is
confident the previous drill holes on the TLE lands, combined with
the findings of the additional 3D seismic data, will result in a
significant movement of the Inferred Resources into the Measured
and Indicated Resource category thereby increasing the
corresponding mine life associated with the Measured and Indicated
Resource.
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 the joint venture agreement
with Muskowekwan Resources Ltd. on our flagship property, Encanto
has been successful in adding a 3.5 fold increase to the project
land package, which now totals approximately 58,300 acres. A
Preliminary Economic Assessment (PEA), based solely on the Home
Reserve Lands (15,500 acres), was released in August of 2011 and an
updated NI 43-101 report describing the increase to the compliant
resource estimate was filed on May 10,
2012.
Encanto's Muskowekwan First Nation property has
a current NI 43-101 resource estimate dated May 9, 2012 titled "2012 Potash Resource
Assessment for the Muskowekwan First Nations Home Reserve Project
South Eastern Saskatchewan, Canada" containing Measured and
Indicated resources of 130.7MMt grading 29.6% KCl or 18.7%
K2O and Inferred resources of 234.7MMt grading 28.3% KCl
or 17.9% K2O.
The Company has 100% interest in two additional
potash properties in Saskatchewan:
the 55,000 acre Ochapowace/Chacachas property and the 140,000 acre
Spar property.
The technical content of this news release has
been reviewed by Ross Moulton,
Vice-President of Exploration for Encanto, 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.
