TRADING SYMBOL: TSXV:EPO
VANCOUVER, June 7, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO or OTCQX: ENCTF) announces that it has received
the results of a successful and final Mineral Rights sub-surface
Designation vote which occurred Thursday May 31, 2012. This vote was in
regard to the designation of Potash and other minerals for Home
Reserve, TLE reserve and pre-reserve Ochapowace lands.
The Company has been formally notified by the Ochapowace Chief and
Council that the final voting results, as tabulated by Aboriginal
Affairs and Northern Development Canada ("AANDC") greatly exceeded the
50% plus one voting requirement to successfully pass.
"We're extremely pleased to see an overwhelming 88% voter support for
the sub-surface mineral designation process on what we consider our
second flagship property" stated Encanto President and CEO Jim
Walchuck. "We now intend to drill a test hole to check the potash
grade and then follow up with a drilling and 3D seismic program in
order to develop a significant NI 43-101 compliant resource estimate
on this second flagship property."
Approximately 50,000 acres of the designated lands are governed under
existing Mineral Exploration Agreements and Exploration Permits from
Indian and Northern Affairs Canada and Exploration Participation
Agreements with the First Nation. The process of continued land
acquisition and permitting has the ability to further add to the total
Encanto further confirms that they recently arranged for an analyst tour
of the Muskowekwan First Nation property and the proposed mine
processing site that was hosted by Chief Reginald Bellerose and members
of his Council. Analysts, Fund Managers and investment banking
representatives were among the attendees. Photos of this tour are
available at the Company website at www.encantopotash.com.
Jim Walchuck commented "We're very pleased at the level of interest that
we are attracting from institutional investors and analysts from across
North America. We're confident of receiving increased research coverage
which will help broaden our base of investors and raise the profile of
our project as we move closer to production."
Encanto continues to meet with analysts and investors across Canada, the
United States and Europe as well as exploring domestic and
international strategic partnerships for the financing, development and
sale of its potash production.
The Company also announces that due to personnel changes at Venture
Liquidity Providers ("VLP") Encanto has ceased to work with them as our
market maker. We thank them for their efforts.
Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded
Canadian resource company engaged in the exploration and development of
potash properties in the Province of Saskatchewan, Canada, the largest
producing potash region in the world. Through the joint venture
agreement with Muskowekwan Resources Limited on our flagship property,
Encanto has been successful in adding a 3.5 fold increase to the
project land package, which now totals approximately 58,300 acres. A
Preliminary Economic Assessment (PEA), based solely on the Home Reserve
Lands (15,500 acres), was released in August of 2011 and an updated NI
43-101 report describing the increase to the compliant resource
estimate was filed on May 10, 2012.
Encanto's Muskowekwan First Nation property has a current NI 43-101
resource estimate containing Measured and Indicated resources of
130.7MMt grading 29.6% KCl or 18.7% K2O and Inferred resources of 234.7MMt grading 28.3% KCl or 17.9% K2O.
The Company has 100% interest in two additional potash properties in
Saskatchewan: the 55,000 Ochapowace/Chacachas project and the 140,000
acre Spar projects.
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
Martin Gagel CFA, MBA
Vanguard Shareholder Solutions
Toll Free: 1-866-918-0824