TRADING SYMBOL: TSXV: EPO
VANCOUVER, March 19, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO and OTCQX: ENCTF) along with The Honourable
Bernard Valcourt, Minister of Aboriginal Affairs and Northern
Development and Muskowekwan First Nation Chief Reginald Bellerose today
announced an important milestone in the development of the first
on-reserve potash mine in Canada.
The Muskowekwan First Nation potash mine project has been accepted by
the federal government under the First Nations Commercial and
Industrial Development Act (FNCIDA). The Act will enable the federal
government to enact regulations that incorporate a provincial
regulatory regime to govern commercial and industrial activities within
The federal government and the Muskowekwan First Nation will begin
discussions with the Province of Saskatchewan to explore a potential
regulation under FNCIDA relating to the proposed mine.
"I am pleased to announce that the Muskowekwan First Nation potash
project is a step closer to becoming a reality," said Minister
Valcourt. "The development of the first on-reserve potash mine in
Canada will create employment and economic growth as well as other
long-term benefits for the First Nation and surrounding communities. I
applaud the community and its leaders for their vision and commitment
to the long-term prosperity of the Muskowekwan First Nation."
"By achieving this milestone we are one step closer to ensuring our
community is a significant resource player in the Province for
generations," said Chief Bellerose. "The employment and training
opportunities will benefit our members as we prepare to go forward with
this venture, as will economic spin-offs in terms of the purchase of
goods and services."
"Acceptance of the Muskowekwan Project under FNCIDA is a prime example
of the cooperation we have observed between both Governments for this
project," commented Encanto President & CEO Jim Walchuck. "This is a
crucial milestone and brings us one step closer to the day we construct
the first mine on First Nation land."
The acceptance of the Muskowekwan project under FNCIDA means that the
Government of Canada can begin the process of developing regulations
for the First Potash Ventures mine. FNCIDA, which came into effect in 2006, reproduces the provincial rules and
regulations that apply to similar large-scale commercial or industrial
projects off reserve and applies them to a specific on-reserve project.
First Potash Ventures, a joint partnership between Encanto and
Muskowekwan Resources Ltd., is working toward developing the mine on
the Muskowekwan First Nation, located 100 km northeast of Regina. The
mine is expected to produce up to 2.8 million tons of potash annually
over a 50-year-plus span. The project will provide real economic
opportunities for the Muskowekwan First Nation, as well as the
surrounding area, by providing training and employment opportunities
during the construction and operation of the mine.
In addition to becoming the first on-reserve potash mine in Canada, the
proposed Muskowekwan project is the first in Saskatchewan to utilize
FNCIDA to regulate a project on reserve lands.
Once the project gets under way, it is expected to generate
approximately 1,000 construction jobs for the development of the mine
and nearly 500 jobs once it is fully operational. In addition, the mine
is expected to generate tens of millions in revenue royalties for the
First Nation annually.
The Harper Government remains focused on four priorities, outlined by
the Prime Minister, that Canadians care most about: their families, the
safety of our streets and communities, their pride in being a citizen
of this country, and their personal financial security.
Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX 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. ("MFN JV") on our flagship property,
Encanto has a project land package, which totals approximately 61,000
largely contiguous acres. A Pre-Feasibility Study was released in
February 2013 confirming Proven & Probable KCI Reserves totaling 162
MMt grading 28% which supports primary and secondary mining for over 50
years at an annual rate of 2.8 million tonnes.
The Company has a 100% interest in two additional potash properties in
Saskatchewan: the 55,000 acre Ochapowace/Chacachas property and the
91,550 acre Spar property.
Encanto is currently exploring domestic & international strategic
partnerships for the financing, development and sale of potash
production from its MFN JV Property.
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