Encanto Announces Closing of Private Placement and Short Term Loan
February 19, 2014
Encanto Potash Corp. (“Encanto” or the “Company”) (TSXV: EPO and OTCQX: ENCTF) is pleased to announce that, further to its news release dated February 13, 2014, it has closed its private placement of 3,150,000 units at a price of $0.17 per unit for gross proceeds of $535,500. Each unit consists of one common share and one share purchase warrant, each warrant entitling the holder to purchase one common share at $0.30 until August 18, 2015. The proceeds from the private placement will be used for general working capital.
The Company is also pleased to announce that it has closed the short term loan of $750,000 announced in its news release of February 13, 2014. The loan is for a term of 60 days maturing on April 20, 2014 and bears interest at the rate of 15% per annum. The lender also received warrants entitling it to purchase up to 1,000,000 common shares at a price of $0.20 per share on or before February 19, 2015.
All securities issued under the private placement will have a four month statutory hold period expiring June 19, 2014. In connection with the private placement and loan, the Company has paid advisory fees of $48,085 to Secutor Capital Management Corp.
Pursuant to the Company’s Stock Option Plan, a total of 750,000 incentive stock options have been granted to employees and consultants of the Company. The options are exercisable at a price of $0.20 per share for a period of 10 years, subject to regulatory approval.
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 dated February 28 2013 titled “Encanto Potash Corp. Technical Report Summarizing the Preliminary Feasibility Study for the Muskowekwan First Nations Home Reserve Project in South Eastern Saskatchewan, Canada” confirms the Proven & Probable KCI Reserves totaling 162 MMt grading 28% which supports primary and secondary mining for over 50 years at an assumed annual rate extraction rate of 2.8 million tonnes.
The Company has an interest in two additional potash properties in Saskatchewan: 20% interest in the 55,000 acre Ochapowace/Chacachas property and 100% interest in the 55,437 acre Spar property.
Encanto is currently exploring domestic & international strategic partnerships for the financing, development and sale of potash production from its MFN JV Property.
The technical content of this news release has been reviewed by James Walchuck, 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.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: “James Walchuck”
James Walchuck
President and CEO
For further information please contact:
James Walchuck
President and CEO
Tel: 604-683-2402
Martin Gagel CFA, MBA
Vanguard Shareholder Solutions
Tel: 604-608-0824
Toll Free: 1-866-918-0824
NT3
