TRADING SYMBOL: TSXV : EPO
VANCOUVER, Dec. 4, 2013 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) (OTCQX: ENCTF) is pleased
to announce that, further to its news release dated November 28, 2013, it has closed its private
placement of 6,222,500 flow-through units at a price of
$0.20 per unit for gross proceeds of
$1,244,500. Each unit consists of one
flow-through common share ("FT Share") and one half of one share
purchase warrant, each whole warrant entitling the holder to
purchase one non flow-through common share at $0.30 until June 4,
2015. The FT Shares will be "flow-through" shares
pursuant to the Income Tax Act (Canada).
Encanto has also closed its private placement to
insiders of the Company of 3,884,411 non flow-through units at a
price of $0.17 per unit for gross
proceeds of $660,350. Each unit
consists of one common share and one half of one share purchase
warrant, each whole warrant entitling the holder to purchase one
common share at $0.30 until
June 4, 2015.
The proceeds of the flow-through private
placement will be used by the Company to incur eligible Canadian
Exploration Expenses as defined by the Income Tax Act
(Canada). The proceeds from
the non-flow through private placement will be used for general
working capital.
In connection with the flow-through private
placement, the Company has paid a finders' fee to Secutor Capital
Management Corp. ("Secutor") equal to 8% of the gross proceeds
raised, and has issued Secutor 248,900 warrants of the
Company. Each warrant will entitle Secutor to purchase one
common share at a price of $0.30
until June 4, 2015.
All securities issued under the private
placements will have a four month statutory hold period expiring
April 5, 2014.
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 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 & Probable KCI Reserves totaling 162 MMt grading 28%
which supports primary and secondary mining for over 50 years at an
assumed annual rate extraction rate of 2.8 million tonnes.
The Company has an interest in two additional
potash properties in Saskatchewan:
20% interest in the 55,000 acre Ochapowace/Chacachas property and
100% interest in the 55,437 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.
The technical content of this news release has
been reviewed by James Walchuck, 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.
