TSXV:EPO
VANCOUVER, April 2, 2013 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO and OTCQX: ENCTF) is
pleased to announce the completion of a private placement of
7,950,000 common shares at a price of $0.34 per share for gross proceeds of
$2,703,000. Mr. Al-Wazzan a director
of the company who has participated in $7.5
million in previous Encanto convertible debentures purchased
7,350,000 of the common shares bringing his total investment to
$10 million.
The Company intends to use the proceeds to
ensure the Feasibility Study on the Muskowekwan First Nation
property and the associated infrastructure and logistics studies
are funded to remain on track for a late 2013 completion date, as
well as provide general working capital for the Company.
Securities issued by the Company in connection
with this Offering are subject to a 4-month "hold period" as
prescribed by the TSX Venture Exchange and applicable securities
laws.
The private placement is subject to acceptance
for filing by the TSX Venture Exchange.
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.
