Trading Symbol: TSXV EPO.V
VANCOUVER, Dec. 20 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") announces the closing of its brokered private placement on
December 17, 2010 with Primary Capital Inc., and Industrial Alliance
Securities Inc., for its private placement offering (the "Offering") of
12,500,000 non flow-through units (the "Units") and, 1,000,000 common
shares to be issued on a "flow-through" basis (the "Flow-Through
Shares"), for aggregate gross proceeds to the Company of $5,500,000.
The Offering was priced at $0.40 per Unit consisting of one common share
and one common share purchase warrant and $0.50 per Flow-Through Share.
Each common share purchase warrant will entitle the holder to acquire
one common share of the Company at a price of $0.60 per common share
for a period of 18 months expiring on June 17, 2012.
A cash commission has been paid to the Agents of $330,000 as well as
749,999 broker warrants exercisable for a period of 18 months at an
exercise price of $0.60 per common share expiring on June 17, 2012. All
securities issued in connection with the Offering will be subject to a
hold period expiring on April 18, 2011.
Encanto's President and CEO, Jim Walchuck, states, "We are pleased to
exit 2010 knowing that the Company is now in a strong financial
position to move forward. We anticipate being in a position to release
the NI 43-101 Report in late January to early February which should be
the watershed moment we have all been waiting for."
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 || || || ||Fred Leigh |
|President and CEO || || || ||Vanguard Shareholder Solutions|
|Tel: 604-683-2402 || || || ||Tel: 604-608-0824|
| || || || ||Toll Free: 1-866-918-0824|