TRADING SYMBOL: TSXV EPO.V
VANCOUVER, May 24, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO) in a continued effort to keep our shareholders
informed, is pleased to provide further information pertaining to both
our upcoming First Nation's off reserve presentations and our near term
As discussed in the May 16, 2011 Operational Update News Release,
President of Encanto Resources Ltd., a 100% wholly owned subsidiary of
Encanto, Rod Hope, and Muskowekwan First Nation ("FN") Chief Reginald
Bellerose will be travelling to a number of Canadian cities to hold
public meetings with off Reserve members of the Muskowekwan FN. The
purpose of these meetings is to ensure that all off Reserve members
fully understand the benefits that will accrue to them and the
Muskowekwan Reserve under the existing Encanto /Muskowekwan Joint
Venture Agreement ("JVA"). Meetings are currently planned for Regina,
Saskatoon and Edmonton.
Some of the benefits of the JVA with Muskowekwan include:
A 3% GORR (gross over-riding royalty). As an example, 2 million tonnes
yearly production will generate approximately $25.5 million of annual
royalty revenue for the Muskowekwan FN (based on $425/tonne)
The staged payment of a $1 million development fee
Training and educational opportunities for the Muskowekwan FN
Potential of three hundred (300) mine, mine related and on reserve jobs
It is important for Encanto shareholders to note that the JVA is
structured such that significant financial benefits are derived at
commencement of potash production so that our joint goals of an
operating mine are well aligned.
Encanto and Muskowekwan are committed to respecting traditional First
Nation values as well as the natural environment throughout the
operation of this partnership.
The Company has sufficient working capital and the budget allows for the
completion of the following:
The upcoming TLE Designation vote
The Preliminary Economic Assessment (PEA) due in early Q3 from Wardrop,
a Tetra Tech Company
The drilling of 2 additional resource wells on TLE Lands
An additional resource estimate and 43-101 technical report by North Rim
Exploration Ltd., once well assays are received which will include both
the Home Reserve and the TLE Lands
General corporate purposes including multiple institutional
The total budget allocated for these above listed purposes is
approximately $4 million.
Encanto wishes to thank our loyal shareholders and we remain committed
to providing regular updates as we move down the path towards opening
Saskatchewan's next potash mine.
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
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 || Fred Leigh |
| President and CEO || Vanguard Shareholder Solutions |
| Tel: 604-683-2402 || Tel: 604-608-0824 |
| || Tel: 1-866-918-0824 |