ENP Newswire - 17 February 2014
Release date- 14022014 - Encanto Potash Corp. (TSXV: EPO and OTCQX: ENCTF) announces a non-brokered private placement of up to 2,150,000 units at a price of $0.17 per unit for gross proceeds of up to $365,500.
Each unit consists of one common share and one share purchase warrant entitling the holder to purchase one common share at $0.30 for a period of 18 months from the date of issuance. The Company intends to use the proceeds for general working capital for the Company.
The Company has also arranged a short term 60 day loan of $750,000 at a 15% per annum interest rate and includes the issuance of 1 million warrants at $.20 for a one year period to the lender.
Completion of the private placement, the loan and the payment of the finder's fees remain subject to the acceptance for filing of the TSX Venture Exchange. The 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.
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.
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
Encanto Potash Corp.
President and CEO
Toll Free: 1-866-918-0824