/NOT FOR DISTRIBUTION TO A US NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES/
Trading Symbol: TSXV EPO.V
VANCOUVER, June 18 /CNW/ - Encanto Potash Corp. (the "Company") is pleased to announce that it has entered into an agreement with Primary Capital Inc. ("Primary") to act as lead agent and Industrial Alliance Securities Inc. ("Industrial"), on a guaranteed basis, for a private placement offering (the "Offering") of up to $5,000,000 in common shares to be issued on a "flow-through" basis ( the "Flow-Through Shares") and up to $1,000,000 in non flow-through units (the "Units"), for aggregate gross proceeds to the Company of $6,000,000.
The Offering is priced at $0.15 per Flow-Through Share and $0.15 per Unit, each Unit consisting of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.20 for a period of 24 months from the date of the closing of the Offering.
The proceeds from the issuance of the Flow-Through Shares will be used to fund the Company's ongoing exploration programs on its qualifying properties in the Province of Saskatchewan. The proceeds from the issuance of the Units will be used by the Company for working capital.
In connection with the Offering, a cash commission of 6.0% of the aggregate gross proceeds arising therefrom will be paid to the Agents and they will also receive broker warrants, exercisable to acquire that number of common shares that is equal to 6% of the number of Offered Securities sold in the Offering at an exercise price of $.20 per common share at any time on or before the date which is 24 months after the Closing Date.
All securities issued in connection with the Offering will be subject to a hold period of four months from the date of the closing of the Offering. The Offering is subject to the approval of the TSX Venture Exchange.
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.
SOURCE Encanto Potash Corp.
For further information: For further information: James Walchuck, President and CEO, Tel: 604-683-2402; Keith Schaefer, Vanguard Shareholder Solutions, Tel: 604-608-0824, Toll Free: 1-866-918-0824