/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES/
TRADING SYMBOL: TSXV:EPO
VANCOUVER,
March 12, 2014 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Corporation") (TSXV: EPO)
(OTCQX: ENCTF) is pleased to announce that it has filed, and
received a receipt for, a preliminary short form prospectus in the
Provinces of British Columbia,
Alberta, Saskatchewan and Ontario to raise gross proceeds of up to
$6,000,000 (the "Offering")
through the issuance of units ("Units") and flow-through
units ("Flow-Through Units").
Encanto will raise up to $5,000,000 from the sale of the Units, with each
such Unit consisting of one common share and one half of one share
purchase warrant, each whole warrant entitling the holder to
purchase one common share for a period of 18 months from the
closing date of the Offering.
Encanto will raise up to $1,000,000 from the sale of the Flow-Through
Units, with each such Flow-Through Unit consisting of one flow
through common share ("FT Share") and one half of one share
purchase warrant, each whole warrant entitling the holder to
purchase one non flow-through common share for a period of 18
months from the closing date of the Offering. The FT Shares
will be "flow-through" shares pursuant to the Income Tax Act
(Canada).
Secutor Capital Management Corporation
("Secutor") has agreed to act as lead agent in connection
with the offering and Haywood Securities Inc. ("Haywood")
has agreed to act as agent (Secutor and Haywood collectively the
"Agents"). The pricing of the Units and Flow-Through
Units and the exercise price of the warrants will be established
before the filing of the final prospectus by negotiation between
Encanto and the Agents.
The proceeds from the sale of the Units will be
used for general working capital. The proceeds from the sale of the
Flow-Through Units will be used by the Encanto to incur eligible
Canadian Exploration Expenses as defined by the Income Tax
Act (Canada).
The Corporation has granted the Agents an
over-allotment option (the "Over-Allotment Option"),
exercisable in whole or in part, at the sole discretion of the
Agents, for a period of 30 days from the closing date of the
Offering, to purchase that number of additional Units (the
"Additional Units") at the offering price per Unit and
having the same terms as the Units, as is equal to 15% of the
aggregate number of Units and Flow-Through Units sold under the
Offering solely to cover over allotments, if any.
In consideration for the services rendered by
the Agents in connection with the Offering, the Agents will be paid
a cash fee equal to 6% of the gross proceeds of the Offering,
including any proceeds received pursuant to the exercise of the
Over-Allotment Option. As additional compensation, the
Corporation will grant to the Agents compensation options (the
"Compensation Options") exercisable to purchase that number
of common shares (the "Compensation Shares") as is equal to
4% of the total number of Units and Flow-Through Units sold
pursuant to the Offering, including any Additional Units sold
pursuant to the exercise of the Over-Allotment Option. Each
Compensation Option will entitle the holder thereof to acquire one
Compensation Share at a price equal to the offering price of the
Units, until the date which is 12 months following the closing date
of the Offering.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "James Walchuck"
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.
