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Encanto completes purchase of Raytec potash assets
8/12/2009 4:16 PM - Canada NewsWire

VANCOUVER, Aug. 12, 2009 (Canada NewsWire via COMTEX News Network) --

Encanto Potash Corp. ("Encanto" or the "Company") is pleased to announce that it has closed its previously announced transactions with Raytec Metals Corp. ("Raytec").

Raytec has transferred all of its interests in its potash properties in Saskatchewan to Encanto's operating subsidiary in exchange for 19,846,525 common shares of Encanto, at a deemed total value of $0.25 per share ($4,961,631 in total). One of the Raytec properties, Permit KP 441, which is part of the Spar Property, is the subject of a technical report (the "Report") prepared by Agapito Associates, Inc., dated July 29, 2009 the authors of which are Dr. Michael Hardy, P.Eng, Dr. Douglas F. Hambley, P.Eng, and Joseph E. Crawford, L.P.G. The Report will be filed on SEDAR concurrently with this news release. The following is a summary of the data in Tables 4 and 5 of the Report outlining the resources in KP 441:

<< Mineral Resource in KP 441 ------------------------------------------------------------------------- (1)Average Average Total Grade Carnallite Average (2)Recov- Thickness over over Insolubles erable over Potash Potash over K(2)O Potash Zone Zone Potash Resource Member Zone (m) (% K(2)O) (% MgCl(2)) Zone (%) (Mt) ------------------------------------------------------------------------- Inferred Mineral Resource ------------------------------------------------------------------------- Upper Belle Plaine 2.98 14.54 0.28 7.90 4.43 Lower Belle Plaine 1.34 30.45 0.23 1.89 7.05 Total 24.31 0.25 4.21 11.48 ------------------------------------------------------------------------- Indicated Mineral Resource ------------------------------------------------------------------------- Lower Patience
Lake 3.06 31.02 0.24 3.87 5.09 Upper Belle Plaine 2.97 14.73 0.28 7.92 3.44 Lower Belle Plaine 1.34 30.16 0.22 1.90 3.51 Total 26.12 0.25 4.45 12.04 ------------------------------------------------------------------------- (1) Average grade calculated using re-assayed data where available and historic assay data elsewhere (2) Recoverable in-place K(2)O tonnes assuming a density of 2.08 tonnes/m(3) and an overall recovery of 36% (10% geologic anomaly and 40% recovery) ------------------------------------------------------------------------- ------------------------------------------------------------------------- >>
Raytec will also incur $6,500,000 in expenditures on Encanto's existing potash properties and Raytec's potash properties (collectively, the "Potash Properties") by December 31, 2009, to earn a 51% interest in the Potash Properties. Encanto will have the option to repurchase the 51% Raytec interest in the Potash Properties for 26,000,000 common shares of Encanto. If this Option is exercised, Raytec will own an aggregate of up to 45,846,525 shares of Encanto which will be equal to an estimated 28.57% of the Company's issued shares based on its current issued share capital.

The agreements between the parties contain certain terms including that for so long as Raytec owns or has the right to own not less than 10% of the issued shares of the Company:

<< (i) Raytec will have the right to nominate up to two directors to the board of directors of the Company proportional to its interest in the Company; and (ii) Raytec will have a pre-emptive right to participate in future financings of the Company so as to preserve its percentage interest in the Company. >>
Accordingly, today Messrs. Brian G. Thurston and Wayne J. Roberts have been appointed to the Board of Directors of Encanto.

Mr. Thurston, HBSc (Geology) is a mining executive with over 16 years of exploration management and operational experience working on projects in North and South America. He is President, CEO and director of Raytec. Previously, he formed part of the initial geological exploration team that evaluated the land holdings of Aurelian Resources Inc. in Ecuador in 2002, and held the position of Country Manager for Aurelian Ecuador S.A. de C.V. in 2004 and 2005.

directorships and VP exploration for several junior public listed issuers. Mr. Roberts has had a successful track record of building mineral inventory for companies and participated in the discovery of the Marigold mine in Nevada and one of Canada's largest zinc deposits, the Cirque deposit in British Columbia. He is a director of Raytec.

Mr. James Walchuck, President of Encanto Potash states, "We intend to rapidly develop Encanto into the leading junior potash developer in Saskatchewan. The addition of the Raytec properties is a giant step towards that goal as I am very excited about the developmental potential on the Spar property. Furthermore, the funds that Raytec has invested will enable us to immediately advance our highly prospective First Nations' lands".

A finder's fee of 500,000 shares was paid to an arm's length party and Endeavour Financial Ltd. received a cash fee in respect of the transaction.

Ross Moulton, P.Geol., Encanto's Vice President, Exploration and a qualified person under National Instrument 43-101, has approved the technical content of this news release.

About Encanto:

Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource company engaged in the exploration and development of potash properties in the Province of Saskatchewan, Canada - the largest producing region for potash in the world. Encanto has agreements with seven First Nations Peoples to assist them in developing potash resources on their lands, which are located within a radius of about 80 kilometres, and cover an aggregate area of over 58,000 hectares in South-Eastern Saskatchewan. In addition, Raytec currently holds over 72,800 hectares of potash permits in Saskatchewan.

To find out more about Encanto Potash Corp., please visit the company website at or review the documents filed on

SOURCE: Encanto Potash Corp.

James Walchuck, President and CEO, Tel: (604) 683-2402; Keith Schaefer, Vanguard Shareholder Solutions, Tel: (604) 608-0824, Toll Free: 1-866-918-0824
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#125   Things have eyes hehe~ SPARK 04/20/16 08:47:57 AM
#124   Things are looking. Mybenz6 04/20/16 06:29:51 AM
#123   Hope she pulls back to .001 I SPARK 04/18/16 04:11:55 PM
#122   Encanto President Stavros Daskos commented on the transaction, SPARK 04/18/16 10:50:51 AM
#121   A Pre-Feasibility Study dated February 28, 2013 referenced SPARK 04/18/16 10:50:18 AM
#120   Following months of continued negotiations subsequent to the SPARK 04/18/16 10:49:33 AM
#119   TSXV:EPO and OTCQX:ENCTF is pleased to announce that SPARK 04/18/16 10:48:25 AM
#118   NICE START!~ SPARK 04/18/16 10:06:41 AM
#117   According to my technical analysis, EPO is still Tek_Charter 12/19/15 07:30:11 PM
#116   mmmmmmmmmmmmmmm INTERESTING eddy2 01/19/15 09:06:02 AM
#115   No Kidding! I think it maybe time to Minuteman-MX 04/18/14 11:31:10 PM
#114   That was some really nice news~ SPARK 04/18/14 09:07:16 PM
#113   Looks like the deal came through with the Minuteman-MX 04/18/14 12:08:59 AM
#112   She'll run soon enough~ SPARK 02/28/12 11:19:51 PM
#111   Vote was 80% Now they will seehow much toolttime 02/28/12 11:03:00 PM
#110   Yup And then some toolttime 02/16/12 01:03:09 PM
#109   .50 comin~ SPARK 02/16/12 01:01:11 PM
#108   Nice day~ SPARK 02/15/12 05:42:02 PM
#107   No brainer~ SPARK 02/14/12 09:57:04 PM
#106   Febuary 25 next vote with band members to toolttime 02/14/12 09:49:28 PM
#105   Wants to do .50~ SPARK 02/14/12 02:25:15 PM
#104   Lookie good!~ SPARK 02/13/12 03:02:59 PM
#103   Graet day!!! kaccching!!! toolttime 02/13/12 02:59:08 PM
#102   Nice day~ SPARK 02/08/12 04:24:33 PM
#101   Keepin going!!~ SPARK 02/08/12 02:04:18 PM
#100   Yumm Yumm~ SPARK 02/06/12 01:42:36 PM
#99   Not a bad week...finally~ SPARK 02/04/12 08:42:33 AM
#98   Brien Lundin, in the December, 2011, to January, SPARK 02/01/12 12:04:16 AM
#95   You don't say~ SPARK 12/24/11 08:43:49 PM
#94   Just found this company while doing Potash research. lmcat 12/24/11 06:59:43 PM
#93   All I can say is KKKaaaa CCCCHHHHiiiinngggggg toolttime 12/22/11 10:43:10 AM
#92   Encanto Potash Corp. Announces $2,000,000 Private Placement Offering SPARK 12/20/11 04:14:49 PM
#91   Encanto Potash: A Junior in Saskatchewan's Potash Industry SPARK 11/29/11 03:03:51 PM
#90   Nice action!~ SPARK 11/28/11 03:47:41 PM
#89   Movin!~ SPARK 11/17/11 11:45:27 AM
#88   Huge, huge news Max Power 11/16/11 09:45:57 PM
#87   Encanto Potash Corp. announces First Nations and Metis SPARK 11/16/11 05:34:55 PM
#86   Reading this means to me Kachinnngggg!!!!!! toolttime 11/11/11 05:10:03 PM
#85   Some of the Biggest Names in Potash Are SPARK 11/10/11 07:31:15 AM
#84   As the world population increases demand for fertilizer toolttime 11/06/11 11:31:16 AM
#82   Yummy stuff~ SPARK 11/04/11 07:46:43 PM
#81   nice day here...nice volume Max Power 10/31/11 09:51:21 PM
#80   Movin~ SPARK 10/31/11 02:18:52 PM
#79   Nice day here!~ SPARK 10/28/11 06:12:01 PM
#78   Epo is the best speculative play in the Max Power 10/27/11 11:16:49 PM
#77   The whole fertilizer segment should have a fantastic Max Power 10/27/11 11:15:51 PM
#76   November should be a month of steady climbing Max Power 10/27/11 11:14:45 PM
#75   Encanto has been picking up speed Max Power 10/27/11 11:14:06 PM
#74   Looks like she's slowly climbing back up~ SPARK 10/27/11 10:45:21 PM
#73   Encanto Potash Corp. announces First Nations warrant extensions J_Gillooly 10/20/11 09:54:49 AM