Initiates 3D seismic at Muskowekwan
Trading Symbol: TSXV EPO.V
VANCOUVER, Dec. 15 /CNW/ - Encanto Potash Corp. CEO James Walchuck is pleased to announce the reconnaissance drill programs at both the Ochapowace and the Muskowekwan properties have now been completed. Assay results from the Ochapowace program should be available by mid-January 2010, with the Muskowekwan results following in the month of February. 2D seismic has also been completed on both properties.
Encanto is also pleased to announce that, further to its news release of September 10, 2009, Encanto has paid $100,000 in cash and is in the process of issuing an aggregate 400,000 shares and 400,000 warrants to purchase an additional 400,000 shares at $0.235 per share on or before November 9, 2011 pursuant to its two Exploration Participation Agreements ("EPA's") signed with the Muskowekwan First Nation.
In addition, in the event Encanto and the First Nation enter into definitive agreements under the EPA's to establish the terms under which Encanto will develop and conduct mining operations under the authority of a mineral lease from the Crown pursuant to the Indian Mining Regulations (Canada), Encanto will issue a further 200,000 shares and warrants to purchase 200,000 shares for a two year period. The exercise price will be equal to the closing price of Encanto's shares on the date the agreement is entered into. The security issuances remain subject to regulatory approval.
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.
To find out more about Encanto Potash Corp., please visit the company website at www.encantopotash.com or review the 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 RESPONSIBLITIY 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: 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