May 24, 2011 (Source: CNW) — Encanto Potash Corp. ("Encanto" or the "Company") (TSXV: EPO) in a continued effort to keep our shareholders informed, is pleased to provide further information pertaining to both our upcoming First Nation's off reserve presentations and our near term project budget.
As discussed in the May 16, 2011 Operational Update News Release, President of Encanto Resources Ltd., a 100% wholly owned subsidiary of Encanto, Rod Hope, and Muskowekwan First Nation ("FN") Chief Reginald Bellerose will be travelling to a number of Canadian cities to hold public meetings with off Reserve members of the Muskowekwan FN. The purpose of these meetings is to ensure that all off Reserve members fully understand the benefits that will accrue to them and the Muskowekwan Reserve under the existing Encanto /Muskowekwan Joint Venture Agreement ("JVA"). Meetings are currently planned for Regina, Saskatoon and Edmonton.
Some of the benefits of the JVA with Muskowekwan include:
- A 3% GORR (gross over-riding royalty). As an example, 2 million tonnes yearly production will generate approximately $25.5 million of annual royalty revenue for the Muskowekwan FN (based on $425/tonne)
- The staged payment of a $1 million development fee
- Training and educational opportunities for the Muskowekwan FN
- Potential of three hundred (300) mine, mine related and on reserve jobs
It is important for Encanto shareholders to note that the JVA is structured such that significant financial benefits are derived at commencement of potash production so that our joint goals of an operating mine are well aligned.
Encanto and Muskowekwan are committed to respecting traditional First Nation values as well as the natural environment throughout the operation of this partnership.
The Company has sufficient working capital and the budget allows for the completion of the following:
- The upcoming TLE Designation vote
- The Preliminary Economic Assessment (PEA) due in early Q3 from Wardrop, a Tetra Tech Company
- The drilling of 2 additional resource wells on TLE Lands
- An additional resource estimate and 43-101 technical report by North Rim Exploration Ltd., once well assays are received which will include both the Home Reserve and the TLE Lands
- General corporate purposes including multiple institutional presentations
The total budget allocated for these above listed purposes is approximately $4 million.
Encanto wishes to thank our loyal shareholders and we remain committed to providing regular updates as we move down the path towards opening Saskatchewan's next potash mine.
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.
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.