TRADING SYMBOL: TSXV:EPO
VANCOUVER,
March 27, 2015 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Company") (TSXV: EPO and
OTCQX: ENCTF) is pleased to announce that through its strategic
advisor, Horgen Holdings Inc., that it has received an expression
of interest from Fengate Capital Management Ltd. ("Fengate")
to undertake the development, construction and financing of a
100-MW power generating station (the "Project") for the
proposed new potash mine and processing plant to be built for the
Company's Muskowekwan Project.
"Encanto is very pleased to be receiving significant interest
and proposals to develop a co-gen plant for the Muskowekwan Project
in anticipation of building our potash mine and plant" explained
Encanto President and CEO James
Walchuck. "Should we come to acceptable commercial
terms for the cost of power, and we see no reason that we would
not, the Capex as calculated in the Pre-feasibility would be
reduced by $250 million with the
associated positive financial impact. It's a big win for
Encanto and shows the confidence from the financial industry that
we are committed to building this mine."
Fengate expects the Project will produce energy using
natural-gas fired electricity generation technology that produces
both heat for steam production and electricity
(cogeneration). The technology is proven and highly efficient
in respect of fuel consumption and air emission. The
engineering, procurement and construction cost of the Project is
expected to be in excess of $250
million.
Fengate would undertake the Project with a development partner
that would lead the technical scope of the project – Fengate has
identified several qualified candidates. Fengate would lead
the capital funding of the Project, including investing the equity
capital and arranging the project debt. Fengate is experienced in
power plant development and financing. Fengate is a private
equity fund manager specializing in the development and funding of
power and infrastructure projects.
Fengate's involvement with the Project, including the investment
of capital and the application of professional resources, will rely
on a high level of confidence that (i) the Potash Mine will be
developed within a reasonable time period, and (ii) SaskPower is
prepared to enter into an acceptable long-term power purchase
agreement for the purchase of the electricity generated by the
Project. Once the Project is completed it will make it possible for
this region of Saskatchewan to be
serviced by the new infrastructure and receive preferential
electrical rates.
About Fengate Capital Management:
Fengate Capital Management is an investment management firm
specializing in originating and managing investments in the
infrastructure and real estate sectors. Fengate is a subsidiary of
Fengate Corporation, which began operations in 1974. The Firm's
operations encompass asset management, real estate and
infrastructure development, and commercial property management
across North America and
international markets.
Fengate began its operations in 2000 with the launch of
Northgate Properties Inc., a real estate fund established on behalf
of a group of high net worth investors. In 2006, Fengate
established its first infrastructure fund targeting investments in
Canadian public-private partnerships and independent power
projects.
For the past seven years, Fengate has been named one of
Canada's 50 Best Managed
Companies, a program sponsored by the National Post, Deloitte, CIBC
and Queen's School of Business.
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange listed and OTCQX
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. ("MFN JV") 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
& Probable KCI Reserves totaling 162 MMt grading 28% which
supports primary and secondary mining for over 50 years at an
assumed annual rate extraction rate of 2.8 million tonnes.
The Company has an interest in two additional potash properties
in Saskatchewan: 20% interest in
the 55,000 acre Ochapowace/Chacachas property and 100% interest in
the 55,437 acre Spar property.
Encanto is currently exploring domestic & international
strategic partnerships for the financing, development and sale of
potash production from its MFN JV Property.
The technical content of this news release has been reviewed and
approved by James Walchuck, a
qualified person as defined by NI 43-101.
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
"James
Walchuck"
Per: _________________
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.
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.