VANCOUVER, March 29, 2017 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) announces that an Order in Council P.C. 2017-258 was issued on March 24, 2017 by the Governor in Council, ending a multi-year process that has culminated in the successful conclusion of the First Nations Commercial and Industrial Development Act ("FNCIDA") process and the delivery of the Muskowekwan First Nation Solution Potash Mining Regulations into law.
The process enables the Muskowekwan First Nation, who had decided to pursue a large scale commercial or industrial on-reserve project (in this case, a large scale potash mine partnered with Encanto Potash) to request the Government of Canada to develop regulations applying to this specific project on a specific piece of reserve land. FNCIDA works by essentially reproducing the provincial rules and regulations that apply to similar large-scale commercial or industrial projects off reserves and applying them to a specific on-reserve project. This approach, called incorporation by reference, ensures that both on and off-reserve projects are subject to similar regulatory regimes levelling the playing field. It offers protection for Muskowekwan people, lands and environment and increases certainty for investors, developers and the public while minimizing costs.
In accordance with the FNCIDA Act, an agreement has been concluded between the Federal Minister of Indian Affairs and Northern Development, the Honourable Carolyn Bennett, the Province of Saskatchewan and the Council of the Muskowekwan First Nation for the administration and enforcement of the Regulations by Provincial officials and bodies. Encanto is now in receipt of these regulations, duly signed by the Clerk of the Privy Council, whose office (PCO) is the hub of non-partisan, public service support to the Prime Minister and Cabinet and its decision making structures.
Muskowekwan First Nation Chief Reginald Bellerose commented: "I'm thankful to past and present MFN Council; Indigenous and Northern Affairs Canada; Department of Justice; Osler, Hoskin & Harcourt LLP; Province of Saskatchewan and Encanto Potash for their efforts and joint collaboration to get these regulations finalized. There were many hands at all levels of government demonstrating an unprecedented level of cooperation and support between themselves and our own Nation. It took some time, but all involved wanted to ensure that we got this precedent setting process entirely right."
Encanto President, Stavros Daskos commented: "I'd like to personally thank Chief Bellerose and his team for their dedicated and tireless efforts in bringing this process to a successful conclusion. This was entirely a government (First Nation) to government (Canadian Federal Government) to government (Province of Saskatchewan) transaction which resulted in a historic agreement between all parties. This represents a critical piece in a Pro First Nations Federal Government, to ensure a favourable investment climate for the development of the first potash mine on First Nation's land."
Encanto Potash Corp. is a TSX Venture Exchange listed and 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. on our flagship property, Encanto has a project land package which totals approximately 61,000 largely contiguous acres. A Pre-Feasibility Study dated February 28, 2013 titled "Encanto Potash Corp. Technical Report Summarizing the Preliminary Feasibility Study for the Muskowekwan First Nations Home Reserve Project in South Eastern Saskatchewan, Canada" confirms the Proven and Probable KCI Reserves totaling 162 MMt grading 28% (average) which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8 million tonnes.
The technical content of this news release has been reviewed and approved by James Walchuck, a qualified person as defined by NI 43-101.
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 SATISFACTION OF ANY APPLICABLE CONDITIONS IN RESPECT OF THE MMTC MOU AND THE OFFTAKE AGREEMENT INCLUDING THOSE IN RELATION TO PROJECT TIMELINES, THE ASSUMPTIONS AND ESTIMATES IN THE COMPANY'S PRE-FEASIBILITY STUDY OF THE MUSKOWEKWAN PROJECT (THE "PFS") PROVING TO BE ACCURATE OVER TIME INCLUDING APPLICABLE RESOURCE ESTIMATES, THE POTENTIAL FOR DELAYS AND INCREASES TO PROJECT COSTS AS A RESULT OF POTENTIAL CHANGES IN PLANNED PRODUCTION RATES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY MARKETS, THE ADEQUACY OF THE COMPANY'S FINANCIAL RESOURCES AND THE AVAILABILITY OF ADDITIONAL FINANCING ON REASONABLE TERMS OR AT ALL, 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. READERS ARE CAUTIONED THAT CURRENT MARKET PRICES FOR THE COMPANY'S PROPOSED PRODUCTS ARE MATERIALLY DIFFERENT THAN THE ESTIMATES USED IN THE PFS AND CHANGES TO THE PROPOSED PRODUCTION RATE WOULD BE EXPECTED TO CAUSE MATERIAL CHANGES TO THE REQUIRED CAPITAL COSTS OF THE PROJECT. 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: Encanto Potash Corp., 3123 - 595 Burrard Street, Vancouver, BC V7X 1J1, Tel: (604) 609-6110; Gary Deathe, Corporate Development, Tel: (647) 728-7987