TSX-V: EPO
VANCOUVER, July 23, 2018 /CNW/ - Encanto Potash Corp.
("Encanto") (TSX-V: EPO) and the Muskowekwan First Nation are
pleased to announce the confirmation of the Government of
Canada's funding to support the
upcoming engineering steps of the Encanto/Muskowekwan potash
project via Indigenous Services Canada.
The collaborative process between Indigenous Services Canada,
Muskowekwan First Nation, and Encanto Potash Corp. started in the
fall of 2017, working together diligently to maximize the
appropriate and timely financial support for the engineering
project needs as efficiently as possible.
Encanto's new Chief Operating Officer ("COO") Richard Lively states: "I am proud of the team
effort that brought us to this stage and the cooperation we
received from Indigenous Services Canada. We are delighted
that both the provincial and federal governments have the
confidence in our plan to move the project forward and see this as
the beginning of a long-term successful relationship."
The project, due to its First Nation ownership stake as well as
the 20 year off take signed by the National Federation of Farmers'
Procurement, Processing, and Retailing Cooperatives of India Ltd.,
which represents 25 of the 29 states of India, was highlighted as a strong opportunity
for funding as the project will share benefits for all parties,
specifically through First Nations development and international
trade relationships for Canada.
"Today's funding is an example of how the Government of
Canada can support initiatives
that fuel the economy, foster partnerships and accelerate regional
growth in Indigenous communities. Canada is pleased to provide the funding
through the Community Opportunity Readiness Program to the
Muskowekwan First Nation, as it promotes economic development and
advances reconciliation."
The Honourable Jane Philpott, M.D., P.C., M.P.
Minister of Indigenous Services
Encanto's Chief Executive Officer Stavros Daskos stated: "This financing will
accompany the funds available to be utilized from the $100 million subscription agreement signed with
Global Emerging Markets." Mr. Daskos would also like to thank
Richard Lively, Encanto's new COO,
who was able to review the current engineering and assist in the
success of this Government funding process.
Encanto and the Muskowekwan First Nation will utilize the funds
to finalize the environmental gap analysis, water study, and value
engineering study. On this path forward, the project looks to
be shovel-ready by November of 2019.
About Encanto Potash Corp.
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, Encanto has secured a project land
package which totals approximately 61,000 largely contiguous acres.
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 and Probable KCI Reserves totaling 162
Mt grading 28% KCl (average) which supports primary and secondary
mining for over 50 years at an assumed annual rate extraction rate
of 2.8 Mt of MOP. The PEA dated May 24,
2017 titled " NI 43-101 Technical Report on a Preliminary
Economic Assessment and Preliminary Feasibility Study of the
Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada"
summarizes an alternative development option that supports primary
and secondary mining of the Mineral Resources for 48 years at an
annual extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year
off-take agreement with the National Federation of Farmers'
Procurement, Processing, and Retailing Cooperatives of India Ltd.,
(NACOF) registered under the Ministry of Agriculture, Government of
India to supply 5 million metric
tons a year of potash.
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ROCK MINED OR THROUGH WHICH INFRASTRUCTURE IS BUILT DIFFERING FROM
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RELATING TO FLUCTUATIONS IN THE CANADIAN DOLLAR RELATIVE TO THE US
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UNANTICIPATED COSTS; DIFFICULTIES ATTRACTING THE NECESSARY WORK
FORCE; INCREASES IN FINANCING COSTS OR ADVERSE CHANGES TO THE TERMS
OF AVAILABLE FINANCING, IF ANY; TAX RATES OR ROYALTIES BEING
GREATER THAN ASSUMED; CHANGES IN DEVELOPMENT OR MINING PLANS DUE TO
CHANGES IN LOGISTICAL, TECHNICAL OR OTHER FACTORS; CHANGES IN
PROJECT PARAMETERS AS PLANS CONTINUE TO BE REFINED; RISKS RELATING
TO RECEIPT OF REGULATORY APPROVALS; DELAYS IN STAKEHOLDER
NEGOTIATIONS; CHANGES IN REGULATIONS APPLYING TO THE DEVELOPMENT,
OPERATION, AND CLOSURE OF MINING OPERATIONS FROM WHAT CURRENTLY
EXISTS; THE EFFECTS OF COMPETITION IN THE MARKETS IN WHICH ENCANTO
OPERATES; AND OPERATIONAL AND INFRASTRUCTURE RISKS. ALTHOUGH
MANAGEMENT HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD
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DISCLAIMS ANY OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS
CONTAINED HEREIN OR TO PUBLICLY ANNOUNCE THE RESULT OF ANY
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SOURCE Encanto Potash Corp.