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TSXV: EPO
VANCOUVER, Aug. 3, 2018 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) is pleased to announce it
has arranged financing to further its strategy to lower the Capex
and engineering costs through the present studies that are being
carried out, as well as for operating capital. This funding will
enable Encanto to move through this present stage into the 4th
quarter. At that time the Company will have the results from
the Environmental Gap Analysis, Water Study and Value Engineering
Studies.
Encanto CEO Stavros Daskos
commented: "Encanto is the only company in the world with a twenty
year 'take or pay' supply agreement with India to supply 5 million metric tons of
potash annually and has a one of a kind Mineral Title issued by the
Government of Canada within the
laws established by the First Nations Commercial and Industrial
Development Act." Mr. Daskos further stated: "Encanto has proven
KCI reserves and now is taking the next step on executing
production in the most efficient way by having surrounded itself
with a very experienced potash mining team. These are the
fundamental steps taken to establish long term and secure revenue
streams for the Company and to thank investors who are able to take
early positions that are least dilutive to shareholders."
The financing will be completed as a non-brokered private
placement of 1,666,666 units at a price of $0.30 per unit for a total of $500,000 (the "Private Placement"). Each unit
will consist of one common share of the Company and one share
purchase warrant ("Warrant"), with each Warrant entitling the
holder to purchase one common share of the Company at a price of
$0.18 per share for a period of 2
years after closing. The Private Placement is subject to certain
conditions including, but not limited to, receipt of all required
regulatory approvals. The securities issued by the Company in
connection with the Private Placement will be subject to a 4-month
and one day hold period as prescribed by the TSX Venture Exchange
and applicable securities laws.
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. 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
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
THIS DOCUMENT MAY CONTAIN "FORWARD-LOOKING
INFORMATION" WITHIN THE MEANING OF CANADIAN SECURITIES LEGISLATION
AND "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THIS INFORMATION AND THESE
STATEMENTS, REFERRED TO HEREIN AS "FORWARD-LOOKING STATEMENTS" ARE
MADE AS OF THE DATE OF THIS DOCUMENT. GENERALLY, THESE
FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF
FORWARD-LOOKING TERMINOLOGY SUCH AS "EXPECTS", "ANTICIPATES",
"PLANS", "PROJECTS", "ESTIMATES", OR VARIATIONS THEREOF OR
STATING THAT CERTAIN ACTIONS, EVENTS OR RESULTS "MAY", "COULD",
"WOULD", OR "MIGHT" BE TAKEN, OCCUR OR BE ACHIEVED. FORWARD-LOOKING
STATEMENTS, WHILE BASED ON MANAGEMENT'S BEST ESTIMATES AND
ASSUMPTIONS, ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT MAY CAUSE
ACTUAL RESULTS TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS, INCLUDING BUT NOT
LIMITED TO: RISKS RELATING TO VARIATIONS IN THE MINERAL CONTENT
WITHIN THE MATERIAL IDENTIFIED AS MINERAL RESOURCES FROM THAT
PREDICTED; VARIATIONS IN RATES OF RECOVERY AND EXTRACTION; THE
GEOTECHNICAL CHARACTERISTICS OF THE ROCK MINED OR THROUGH WHICH
INFRASTRUCTURE IS BUILT DIFFERING FROM THAT PREDICTED, DEVELOPMENTS
IN WORLD METALS MARKETS; RISKS RELATING TO FLUCTUATIONS IN THE
CANADIAN DOLLAR RELATIVE TO THE US DOLLAR; INCREASES IN THE
ESTIMATED CAPITAL AND OPERATING COSTS OR 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
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN
FORWARD-LOOKING STATEMENTS, THERE MAY BE OTHER FACTORS THAT CAUSE
RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED OR INTENDED. THERE CAN
BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE, AS
ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN SUCH STATEMENTS. ACCORDINGLY, READERS SHOULD NOT
PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS. ENCANTO
DISCLAIMS ANY OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS
CONTAINED HEREIN OR TO PUBLICLY ANNOUNCE THE RESULT OF ANY
REVISIONS TO ANY SUCH STATEMENTS TO REFLECT FUTURE RESULTS, EXCEPT
AS REQUIRED BY APPLICABLE SECURITIES LAW. PLEASE REFER TO ENCANTO'S
MOST RECENT FILINGS UNDER ITS PROFILE AT WWW.SEDAR.COM FOR
FURTHER INFORMATION RESPECTING THE RISKS AFFECTING ENCANTO AND ITS
BUSINESS.
SOURCE Encanto Potash Corp.