TAYLOR-DEJONGH (TDJ), to provide equity and project finance support for Encanto Potash's development phase activities
VANCOUVER, April 24, 2017 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) is pleased to announce that Taylor-Dejongh ("TDJ") has executed a financing agreement ("FA") with Encanto Potash Corp. Encanto and Muskowekwan Resources Ltd. ("MRL") have a joint venture agreement to develop the Muskowekwan Potash Project – the first mining project in Saskatchewan, Canada, on First Nations land.
The FA sets forth the terms of engagement under which TDJ will provide investor funding to Encanto for an initial equity investment of $10 Million for general working capital requirements and a subsequent project equity investment of $60 Million for the completion of project specific activities including the completion of a Bankability Feasibility Study (BFS).
Ibrahim Mardam-Bey, Chief Commercial Officer for Taylor-DeJongh said: "Encanto's well devised business plan to develop potash resources on the heels of a significant off take agreement allows Taylor-DeJongh to procure the required financing support for a $10 Million equity investment targeted to close in May, 2017. We will in parallel be finalizing a project equity facility commitment of $60 Million later in June."
Encanto Potash Corp. President and CEO Stavros Daskos said: "Taylor-DeJongh's extensive track financing record in the mining sector will be a cornerstone in Encanto's next phase of development. We are excited to add TDJ to our core team of advisors."
ABOUT TAYLOR DEJONGH:
Taylor-DeJongh is an energy and infrastructure investment-banking firm that has ranked as a Top 10 Financial Advisor every year since 1996. The firm provides independent strategic and financial advisory services to a global clientele in the development, structuring, negotiating and financing of major capital investments in mining, energy and infrastructure. The firm has over 30 years of experience in structuring complex transactions in more than 110 countries, with an aggregate value of over USD 250 billion.
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.
Encanto Potash Corp.
3123 – 595 Burrard Street
Vancouver, BC V7X 1J1
Tel: (604) 609-6110
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: please contact: Gary Deathe, Corporate Development, Tel: (647) 728-7987