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TRADING SYMBOL: TSXV:EPO
VANCOUVER,
April 1, 2014 /CNW/ - Encanto Potash
Corp. ("Encanto" or the "Corporation") (TSXV: EPO and
OTCQX: ENCTF) is pleased to announce that further to its news
release of March 12, 2014 it has
filed and obtained a receipt for a final short form prospectus to
raise gross proceeds of up to $4,000,565 (the "Offering") through the
issuance of units ("Units") and flow-through units
("Flow-Through Units").
Encanto will raise up to $3,000,500 from the sale of 17,650,000 Units at a
price of $0.17 per Unit, 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 non flow-through common share at a price of
$0.30 per share for a period of 18
months from the closing date of the Offering.
Encanto will raise up to $1,000,065 from the sale of 5,263,500
Flow-Through Units at a price of $0.19 per Flow-Through Unit, 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 at a price of $0.30 per 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.
Secutor Capital Management Corporation ("Secutor") is
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 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 a price of
$0.17 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 of $0.17 per
Compensation Share, 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.
