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.
ON BEHALF OF THE BOARD OF DIRECTORS
| 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.
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|