/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
TRADING SYMBOL: TSXV:EPO
VANCOUVER, Nov. 28, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") (TSXV: EPO and OTCQX: ENCTF) announces it has agreed with
investors for a private placement of up to 6,000,000 flow through units
at a price of $0.20 per unit for gross proceeds of up to $1,200,000.
Each unit consists of one flow-through common share ("FT Share") and
one-half of one share purchase warrant, each whole warrant entitling
the holder to purchase one non flow-through common share at $0.30 for a
period of 18 months from the date of issuance. The FT Shares will be
"flow-through" shares pursuant to the Income Tax Act (Canada).
Encanto will also conduct a non-brokered private placement to insiders
of Encanto of 3,294,706 non flow-through units at a price of $0.17 per
unit for gross proceeds of $560,100. Each unit consists of one common
share and one-half of one share purchase warrant, each whole warrant
entitling the holder to purchase one common share at $0.30 for a period
of 18 months from the date of issuance.
The proceeds of the flow-through private placement will be used by the
Company to incur eligible Canadian Exploration Expenses as defined by
the Income Tax Act (Canada). The proceeds from the non-flow through private placement
will be used for general working capital.
The Company will pay a finders' fee to Secutor Capital Management Corp.
("Secutor") in respect of the flow-through private placement of 8% of
the gross proceeds and will issue to Secutor warrants entitling it to
purchase that number of common shares as is equal to 4% of the number
of units sold in the flow-through private placement. Each warrant will
entitle Secutor to purchase one common share at a price of $0.30 for a
period of 18 months from the date of issuance.
Completion of the private placement and the payment of the finder's fees
remain subject to the acceptance for filing of the TSX Venture
Exchange. All securities issued under the private placement will have
a four month statutory hold period.
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 an interest in two additional potash properties in
Saskatchewan: 20% interest in the 55,000 acre Ochapowace/Chacachas
property and 100% interest in the 55,437 acre Spar property.
Encanto is currently exploring domestic and 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
Per: "James Walchuck"
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