Encanto Potash Corp.
(the "Company") is pleased to announce that it has entered into
an agreement with Mackie Research Capital Corporation ("Mackie Research
Capital") to act as lead agent and sole bookrunner, on a best-efforts
basis, for a private placement offering (the "Offering") of up to
$5,000,000 in common shares to be issued on a "flow-through"
basis ( the "Flow-Through Shares") and up to $1,000,000 in units
(the "Units"), for aggregate gross proceeds to the Company of $6,000,000.
The Offering will be
priced in the context of the market, with indicative terms of $0.23
per Flow-Through Share and $0.20 per Unit, each Unit consisting of one
common share and one-half of one common share purchase warrant.
Each whole common share purchase warrant will entitle the holder thereof
to acquire one common share of the Company at a price of $0.25 for a
period of 24 months from the date of the closing of the Offering.
The proceeds from the
issuance of the Flow-Through Shares will be used to fund the Company's
ongoing exploration programs on its qualifying properties in the Province
of Saskatchewan. The proceeds from the issuance of the Units will be
used by the Company for working capital.
In connection with
the Offering, a cash commission of 6.0% of the aggregate gross proceed
arising therefrom will be paid to Mackie Research Capital. In
addition, upon closing of the Offering Mackie Research Capital will
receive non-transferable options, exercisable into common shares of
the Company at any time up to 24 months from the date of the closing
of the Offering, equal to 6.0% of the number of Units issued and exercisable
at the price of the Units, and 5.0% of the number of Flow-Through Shares
issued and exercisable at the price of the Flow-Through Shares.
All securities issued
in connection with the Offering will be subject to a hold period of
four months from the date of the closing of the Offering. The Offering
is subject to the approval of the TSX Venture Exchange.
At this time the Company
also announces the resignation of Wayne Roberts from its Board of Directors.
The Company would like to thank Mr. Roberts for his contribution to
the board and wishes him every success in his future endeavors.
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.
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
"James
Walchuck"
Per:
For further information please contact:
James Walchuck Keith Schaefer
President and CEO Vanguard Shareholder Solutions
Tel: 604-683-2402 Tel: 604-608-0824
Toll Free: 1-866-918-0824
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.