TRADING SYMBOL: TSXV:EPO
VANCOUVER, June 3, 2016 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) is pleased
to announce that, further to its news release of May 16, 2016, it has closed its private placement
of non-flow-through units ("Units") and flow-through
shares. A total of 24,503,000 Units were issued at a price of
$0.105 per Unit for gross proceeds of
$2,572,815. Each Unit consists
of one common share and one warrant, each warrant entitling the
holder to purchase one common share at a price of $0.16 per share on or before December 3, 2018. Additionally, a total of
3,125,000 flow-through common shares were issued at a price of
$0.16 per share for gross proceeds of
$500,000. Finders' fees of
$25,210 were paid in connection with
the private placement.
The proceeds from the private placement will allow Encanto to
discharge its accounts payable, will provide working capital, and
will provide funds for work on the Muskowekwan Project and to
establish the potash trading company.
Insiders purchased an aggregate of 11,715,500 Units.
The shares and warrants comprising the Units issued in
connection with the private placement are subject to a hold period
expiring October 4, 2016, and the
flow-through shares are subject to a hold period expiring
September 25, 2016.
The Company also announces that, subject to receipt of final
acceptance for filing of the TSX Venture Exchange, it is issuing
20,000,000 bonus shares in consideration for consulting services,
of which 8,000,000 shares will be subject to a four month hold
period from the date of issuance and the balance of 12,000,000
shares will be held in escrow and subject to release as
follows:
|
(a)
|
6,000,000 escrow
shares upon receipt by the escrow agent of written confirmation
from Encanto, that Encanto or a trading company in which Encanto
has a commercial interest, has successfully delivered its first
shipment of potash to Metals and Minerals Trading Company of India
("MMTC") pursuant to a Memorandum of Understanding with MMTC
dated October 9, 2015, as amended March 10, 2016, or has
successfully delivered its first shipment of potash to any public
sector undertaking of the Government of India; and
|
|
|
|
(b)
|
6,000,000 escrow
shares or, if 6,000,000 escrow shares have not been released
pursuant to (a) above, then 12,000,000 escrow shares, upon receipt
by the escrow agent of written confirmation from Encanto that
Encanto or an affiliate has entered into a definitive off-take
agreement with MMTC or a party arranged by MMTC or by the holders
of the escrow shares for the long term supply of potash.
|
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 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 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
"James
Walchuck"
Per:
James Walchuck
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.