Trading Symbol: TSX-V: EPO
VANCOUVER, Feb. 2, 2012 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO or OTCQX: ENCTF) announces that Muskowekwan
Resources Limited ("MRL"), as general partner of the Muskowekwan
Limited Partnership and the Muskowekwan First Nation ("MFN") have
provided Encanto the opportunity to add significant new lands to the
current Joint Venture Agreement with MRL and MFN. These new
additional lands will be part of the upcoming sub-surface land
designation vote on February 25, 2012.
As consideration for the opportunity to add these lands to the current
Joint Venture Agreement, EPO has agreed to issue to MRL an additional
400,000 common shares and 400,000 common share purchase warrants
exercisable at a price of $0.26 per share for a two year period.
The additional lands consist of approximately 42,800 acres of which
27,600 are "TLE" lands and 15,700 are "pre-reserve" lands. Including
these lands with the existing 15,500 acre Home Reserve, a positive
designation vote will bring the total land package subject to the Joint
Venture Agreement to roughly 58,300 acres. This is approximately a 3.5
fold areal increase from the original Home Reserve land holdings.
Pre-reserve lands are lands that are designated for reserve status but
have not yet been transferred to full reserve status. This transfer is
a straight forward well established procedure. If the upcoming vote
receives the requisite majority approval, these pre-reserve lands will
be designated for surrender of mineral rights to the Crown, which is
required before a mineral lease can be applied for.
Chief Reginald Bellerose of the MFN commented "by adding the right for
these additional lands to be contributed to the Joint Venture with
Encanto we have again clearly demonstrated our Nation's commitment to
see the development of the world's first potash mine on First Nations'
soil. These land additions to the Joint Venture are an obvious fit
with our Nation's mission "to establish and maintain viable and
profitable businesses and investments that create employment and wealth
for our Nation." We remain confident of a positive vote on February 25th and that it will complete another major step in our path towards the
The vote, as per Aboriginal Affairs Northern Development Canada
("AANDC") regulations, will require a simple majority of those voting
to be in favour of the mineral designation in order to pass
successfully. "In light of the 80% positive support from the
Muskowekwan Band membership in the first vote held on November 26,
2011, we see this greatly increased land position as a huge positive
for both Encanto and MRL and for the Muskowekwan people" stated Encanto
President and CEO, Jim Walchuck. "We thank Chief Reginald Bellerose and
his Councillors for their hard work on behalf of our partnership and
their people as we move towards opening Saskatchewan's next solution
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. These resources, based on the
solution mining method, may be increased substantially with the
addition of the Treaty Land Entitlement acreage. 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 scheduled in 2012.
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:
| James Walchuck |
President and CEO
| || || || || Daniel Caamano |
Vanguard Shareholder Solutions
Toll Free: 1-866-918-0824