TRADING SYMBOL: TSXV EPO.V
VANCOUVER, Oct. 22 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") is pleased to announce that it has signed a formal Joint
Venture Agreement ("JVA") with the Muskowekwan First Nations ("MFN"),
and their wholly-owned operating company, Muskowekwan Resources Ltd.
("MRL") for the purpose of developing and operating a potash mine on
the Muskowekwan First Nations' land.
The salient terms of the JVA are:
(a) MRL will receive a three percent (3%) Gross Overriding Royalty
(b) Encanto will immediately issue to MRL 200,000 common shares and
200,000 share purchase warrants exercisable at $0.22 for a period of
two years from the date of issuance;
(c) Property taxes payable are defined and capped at a rate that
will not exceed that average rate charged by the Municipalities in
Saskatchewan for similar projects;
(d) MFN and MRL will contribute all mineral leases granted by the
Crown, pursuant to the governing regulations, and will hold said leases
in trust for the benefit of the JVA; and
(e) MFN will be paid a total fee of one million dollars ($1,000,000)
based on certain milestones being achieved over the next 18 months of
which the initial $200,000 has been paid; and
(f) the parties will jointly appoint a Management Committee to
supervise the business affairs of the Joint Venture.
The JVA confirms and sets out the process and specific covenants of the
parties to allow the project to proceed to mine operation stage
uninterrupted and without further negotiation.
Encanto President & CEO James Walchuck commented "We are very pleased to
have achieved this landmark step in our relationship with the
Muskowekwan First Nation. The agreement provides the certainty of
title while concurrently affording an equitable far reaching agreement
for the Muskowekwan First Nation."
Muskowekwan Chief and MRL President Reg Bellerose today said that his
Nation "is committed to becoming more self-reliant as a community and
is determined to reduce its historical dependence on government funding
through increasing its own-source revenue." He went on to say that
"this Agreement with Encanto Potash is a solid opportunity to do that
over the long term. It provides a framework for potash development in
our Territory, allows our Nation to participate and benefit fully, and
most importantly, ensures that these developments do not compromise our
existing rights, assets, environment and culture. This is a formula
our Nation can accept and obviously so can Industry. Today is a good
Encanto Potash Corp. is a TSX Venture Exchange-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.
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
ON BEHALF OF MFN/MRL
President and CEO
"Chief Reginald Bellerose"
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: For further information:
|James Walchuck ||Fred Leigh ||Chief Reg Bellerose|
|President and CEO ||Vanguard Shareholder Solutions ||Muskowekwan First Nation|
|Tel: 604-683-2402 ||Tel: 604-608-0824 ||Tel: 306-274-7641|
| ||Tel: 1-866-918-0824|