TRADING SYMBOL: TSXV:EPO
VANCOUVER,
Feb. 19, 2014 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Company") (TSXV: EPO) (OTCQX: ENCTF) is
pleased to announce that, further to its news release dated
February 13, 2014, it has closed its
private placement of 3,150,000 units at a price of $0.17 per unit for gross proceeds of $535,500. Each unit consists of one common
share and one share purchase warrant, each warrant entitling the
holder to purchase one common share at $0.30 until August 18,
2015. The proceeds from the private placement will be used
for general working capital.
The Company is also pleased to announce that it
has closed the short term loan of $750,000 announced in its news release of
February 13, 2014. The loan is
for a term of 60 days maturing on April 20,
2014 and bears interest at the rate of 15% per annum.
The lender also received warrants entitling it to purchase up to
1,000,000 common shares at a price of $0.20 per share on or before February 19, 2015.
All securities issued under the private
placement will have a four month statutory hold period expiring
June 19, 2014. In connection
with the private placement and loan, the Company has paid advisory
fees of $48,085 to Secutor Capital
Management Corp.
Pursuant to the Company's Stock Option Plan, a
total of 750,000 incentive stock options have been granted to
employees and consultants of the Company. The options are
exercisable at a price of $0.20 per
share for a period of 10 years, subject to regulatory approval.
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.
