TRADING SYMBOL: TSXV EPO
VANCOUVER, Feb. 27, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO or OTCQX: ENCTF) announces that they have
received the results of a second and successful Mineral Rights
Designation vote which occurred Saturday February 25, 2012. This vote
was in regard to the designation of minerals for the TLE and
pre-reserve Muskowekwan lands which are in addition to the already
designated Muskowekwan Home Reserve.
The Company has been formally notified by Muskowekwan Resources Limited
("MRL"), as general partner of the Muskowekwan Limited Partnership and
the Muskowekwan First Nation ("MFN") that the final voting results, as
tabulated by Aboriginal Affairs and Northern Development Canada
("AANDC") were as follows:
545 Muskowekwan FN members exercised their right to cast their vote.
Of those that voted, 435 or 80% voted in favour of the designation and
it therefore passed by a significant margin, having met the AANDC
regulatory requirement of 50% plus one to succeed.
Muskowekwan FN Chief Reginald Bellerose stated that, "This vote is a
clear mandate from our membership to continue with our work to develop
Canada's first potash mine on our First Nation lands. Going forward we
understand and commit to sustain our due diligence to the environmental
responsibilities of our homeland. We now welcome an active leadership
role as providers of career and entrepreneurship development,
educational advancement, and skills training opportunities for our
people. We anticipate there will be many other community and economic
benefits that will accrue through a future production royalty. This
decisive vote result is viewed as a very positive landmark event for
our First Nation."
As previously released by the Company on February 2, 2012, the land
package that is governed by the Joint Venture Agreement ("JVA") was
increased by approximately 42,800 acres, bringing the total land
package to roughly 58,300. The process of further land acquisition is
not complete and these totals may be added to in the future.
Encanto looks forward to the issuance of an updated NI 43-101 Technical
Report containing a new resource estimate. The resource calculation
will be carried out by North Rim Exploration Consultants and will
include the new lands which were just designated.
Encanto President and CEO, James Walchuck offered this additional
update. "We are more than pleased with the results of this milestone in
the history of Encanto Potash and our Joint Venture Agreement partner.
We'd like to once again thank Chief Bellerose and his Council as well
as the Muskowekwan First Nation people for having the faith and
understanding that together we can do great things for both the
Muskowekwan First Nation and our shareholders. With previous drill
programs having established coverage over the majority of the new
lands, we are looking forward to delivering a new and expanded resource
estimate as we continue to move this project towards becoming a
producing potash mine."
Encanto Potash Corp. is a TSX Venture Exchange and OTCQX listed Canadian
resource company engaged in the exploration and development of potash
properties in the Province of Saskatchewan, Canada, the largest
producing region for potash in the world. Encanto's flagship
Muskowekwan First Nation property has a recent NI 43-101 resource
estimate containing 79.1 million tonnes of KCI grading 29.4% in the
Indicated resources category along with 60.5 million tonnes grading
29.7% in the Inferred resource category. With recent agreements
announced with Muskowekwan Resources Limited, Encanto has been
successful in adding a 3.5 fold increase to the Project's land package,
now totalling approximately 58,300 acres. A Preliminary Economic
Assessment (PEA), based solely on the Indicated Resource estimate, was
released in August of 2011 and a further release of an expanded NI
43-101 compliant resource estimate is pending.
The technical content of this news release has been reviewed by Ross
Moulton, VP of Exploration for Encanto, 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
President and 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.
For further information:
President and CEO
Vanguard Shareholder Solutions
Toll Free: 1-866-918-0824