TRADING SYMBOL: TSXV: EPO
VANCOUVER, April 28, 2016 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) is pleased
to announce that they have now secured written interest from an
existing potash producer to supply potash to a trading company
currently being formed, a key step in its plan to become a supplier
of potash to Metals and Minerals Trading Company of India (MMTC) http://mmtclimited.gov.in.
The expanded terms for the Memo of Understanding (MOU) between
Encanto and MMTC (press released April 13,
2016) provided the provision for Encanto to facilitate the
immediate supply of potash to MMTC. Encanto now confirms that
they have secured an agreement from an existing producer of muriate
of potash (MOP) to be able to facilitate its first delivery of
potash to MMTC. Specifications for the product have been
supplied and approved.
Encanto is currently focused on creating the trading company in
cooperation with the Muskowekwan First Nation (MFN) and MMTC to
become an active potash supplier while concurrently developing the
flagship Muskowekwan project. The ability to supply future
potash sales to MMTC would provide a forthcoming revenue stream as
well strengthen our working relationship with MMTC and the
Government of India. These future potash sales will
supplement Encanto's goal of producing a minimum of 2,000,000
metric tonnes of potash per annum (approximately US$600 million at current prices) from the
Company's Muskowekwan Project, in Saskatchewan to MMTC.
"The ability to deliver potash immediately is an extreme rarity
for a junior potash development company and has become possible due
to long established international trade relationships that I have
developed over an extensive period of time," stated Encanto
President Stavros Daskos. "We're
executing on our plan to evolve into Canada's newest supplier of potash to one of
the world's largest buyers."
A Pre-Feasibility Study dated February
28, 2013 referenced below confirms Proven and Probable KCI
Reserves on the Muskowekwan Project totalling 162 MMt grading 28%,
which supports primary and secondary mining for over 50 years at an
assumed annual extraction rate of 2.8 million tonnes.
Once in production, Encanto and MMTC have agreed that MMTC will
also act as Encanto's worldwide distributor of potash on an
exclusive basis for their full mine capacity, which is expected to
provide access to additional markets beyond the primary market in
India.
MMTC, established in 1963, is a Government of India Public
Sector Undertaking ("PSU"), India's Largest International Trading Company
is one of the two highest foreign exchange earners for the country
with a turnover of ~US $10 billion
annually. MMTC is the first PSU to be accorded the status of
"FIVE STAR EXPORT HOUSE" by the Government of India for long standing contribution to
exports and, most importantly, is one of the world's largest buyers
of fertilizers. MMTC is owned by the Ministry of Commerce
that is also responsible for the Export Credit Guarantee
Corporation of India Limited.
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange listed and 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. on our flagship Muskowekwan
Project, 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 tons.
The Company also has a 5% interest in the 55,000 acre
Ochapowace/Chacachas property also located in Saskatchewan.
The technical content of this news release has been reviewed and
approved 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"
Chief Executive Officer
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 OUTCOME OF NEGOTIATIONS WITH THIRD PARTIES, 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.
