TRADING SYMBOL: TSXV: EPO
VANCOUVER, March 19, 2013 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) along
with The Honourable Bernard Valcourt, Minister of Aboriginal
Affairs and Northern Development and Muskowekwan First Nation Chief
Reginald Bellerose today announced
an important milestone in the development of the first on-reserve
potash mine in Canada.
The Muskowekwan First Nation potash mine project
has been accepted by the federal government under the First Nations
Commercial and Industrial Development Act (FNCIDA). The Act will
enable the federal government to enact regulations that incorporate
a provincial regulatory regime to govern commercial and industrial
activities within a province.
The federal government and the Muskowekwan First
Nation will begin discussions with the Province of Saskatchewan to explore a potential regulation
under FNCIDA relating to the proposed mine.
"I am pleased to announce that the Muskowekwan
First Nation potash project is a step closer to becoming a
reality," said Minister Valcourt. "The development of the first
on-reserve potash mine in Canada
will create employment and economic growth as well as other
long-term benefits for the First Nation and surrounding
communities. I applaud the community and its leaders for their
vision and commitment to the long-term prosperity of the
Muskowekwan First Nation."
"By achieving this milestone we are one step
closer to ensuring our community is a significant resource player
in the Province for generations," said Chief Bellerose. "The
employment and training opportunities will benefit our members as
we prepare to go forward with this venture, as will economic
spin-offs in terms of the purchase of goods and services."
"Acceptance of the Muskowekwan Project under
FNCIDA is a prime example of the cooperation we have observed
between both Governments for this project," commented Encanto
President & CEO Jim
Walchuck. "This is a crucial milestone and brings us
one step closer to the day we construct the first mine on First
Nation land."
The acceptance of the Muskowekwan project under
FNCIDA means that the Government of Canada can begin the process of developing
regulations for the First Potash Ventures mine. FNCIDA, which came
into effect in 2006, reproduces the provincial rules and
regulations that apply to similar large-scale commercial or
industrial projects off reserve and applies them to a specific
on-reserve project.
First Potash Ventures, a joint partnership
between Encanto and Muskowekwan Resources Ltd., is working toward
developing the mine on the Muskowekwan First Nation, located 100 km
northeast of Regina. The mine is
expected to produce up to 2.8 million tons of potash annually over
a 50-year-plus span. The project will provide real economic
opportunities for the Muskowekwan First Nation, as well as the
surrounding area, by providing training and employment
opportunities during the construction and operation of the
mine.
In addition to becoming the first on-reserve
potash mine in Canada, the
proposed Muskowekwan project is the first in Saskatchewan to utilize FNCIDA to regulate a
project on reserve lands.
Once the project gets under way, it is expected
to generate approximately 1,000 construction jobs for the
development of the mine and nearly 500 jobs once it is fully
operational. In addition, the mine is expected to generate tens of
millions in revenue royalties for the First Nation annually.
The Harper Government remains focused on four
priorities, outlined by the Prime Minister, that Canadians care
most about: their families, the safety of our streets and
communities, their pride in being a citizen of this country, and
their personal financial security.
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 was
released in February 2013 confirming
Proven & Probable KCI Reserves totaling 162 MMt grading 28%
which supports primary and secondary mining for over 50 years at an
annual rate of 2.8 million tonnes.
The Company has a 100% interest in two
additional potash properties in Saskatchewan: the 55,000 acre
Ochapowace/Chacachas property and the 91,550 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.
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
"James Walchuck"
Per: _________________
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.
