Encanto Potash Corp. Announces $2,000,000 Private Placement Offering Of Flow-through Shares http://www.digitaljournal.com/pr/529360
Trading Symbol: TSXV EPO
VANCOUVER, Dec. 20, 2011 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) or (OTCQX: ENCTF) is pleased to announce a non brokered private placement offering (the "Offering") of up to 5,000,000 common shares to be issued on a "flow-through" basis at $0.40
per common share (the "Flow-through Shares") for aggregate gross proceeds to the Company of $2,000,000.
The proceeds from the financing will be used to expand the resources on Encanto's potash properties located in southern Saskatchewan through 3D seismic and or drilling programs.
In connection with the Offering, a 5% cash finder's fee of the aggregate gross proceeds arising therefrom will be paid to Industrial Alliance Securities. All securities issued in connection with the Offering will be subject to a hold period of four months from the date of closing. The Offering is subject to the approval of the TSX Venture Exchange.
The Company is also pleased to confirm the appointment of Jamie Schwitzer to the Board of Directors. Mr. Schwitzer serves as the Vice President of Westcap Mgt. Ltd. He holds a Bachelor of Arts and Administration from the University of Regina, Saskatchewan, and maintains a CFA designation.
Encanto Potash Corp. is a TSX Venture Exchange and OTCQX 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's flagship Muskowekwan First Nation property has a recent NI 43-101 resource estimate containing 79.1 million tonnes of KCI grading 29.4% in the Indicated resources category along with 60.5 million tonnes grading 29.7% in the Inferred resource category. These resources, based on the solution mining method, may be increased substantially with the addition of the Treaty Land Entitlement acreage. A Preliminary Economic Assessment (PEA), based solely on the Indicated Resource estimate, was released in August of 2011 and a further release of an expanded NI 43-101 compliant resource estimate is scheduled in 2012.
The technical content of this news release has been reviewed by Ross Moulton, VP of Exploration for Encanto, 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.