TSXV:EPO
VANCOUVER, April 8, 2013 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) (OTCQX: ENCTF) is pleased
to announce the closing of the private placement of 7,950,000
common shares at a price of $0.34 per
share for gross proceeds of $2,703,000 previously announced April 2, 2013.
A finders' fee of 5% of the gross proceeds was
paid in connection with the financing. The Company intends to
use the proceeds to ensure the Feasibility Study on the Muskowekwan
First Nation property and the associated infrastructure and
logistics studies are funded to remain on track for a late 2013
completion date, as well as provide general working capital for the
Company. The securities issued in connection with this
Offering are subject to a 4-month "hold period" as prescribed by
the TSX Venture Exchange and applicable securities laws expiring
August 9, 2013.
Pursuant to the private placement, Hamad Al-Wazzan of Plot 71 Jahra Road, Pepsi
Cola St, Shuwaik, Kuwait acquired
7,350,000 common shares at $0.34 per
common share which represent 2.57% of the issued and outstanding
common shares of the Company following completion of the private
placement.
As a result of the acquisition of securities
described above, Hamad Al-Wazzan
holds 7,350,000 common shares representing 2.57% of the current
issued and outstanding common shares of the Company, and would own
37,350,000 common shares representing 11.81% on a partially diluted
basis assuming the conversion of $7.5
million in convertible debentures.
The Company is advised that Hamad Al-Wazzan acquired these securities for
investment purposes and has no present intention to acquire further
securities of the Company, although he may in the future acquire or
dispose of securities of the Company, through the market, privately
or otherwise, as circumstances or market conditions warrant.
The exemption relied upon to acquire the securities was BC
Instrument 72-503 on the basis that Mr. Al-Wazzan is not a resident
of British Columbia and is not a
resident of any other Canadian jurisdiction. A copy of the
early warning report required by National Instrument 62-103 has
been provided to the Company and can be obtained by contacting the
Company as indicated below.
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 was
released in February 2013 confirming
Proven & Probable KCI Reserves totaling 162 MMt grading 28%
which supports primary and secondary mining for over 50 years at an
annual rate of 2.8 million tonnes.
The Company has a 100% interest in two
additional potash properties in Saskatchewan: the 55,000 acre
Ochapowace/Chacachas property and the 91,550 acre Spar
property.
Encanto is currently exploring domestic and
international strategic partnerships for the financing, development
and sale of potash production from its MFN JV Property.
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.
