Encanto
Potash Corp. ("Encanto" or the
"Company") announces the closing of its brokered private placement
on December 17, 2010 with Primary Capital Inc., and Industrial Alliance
Securities Inc., for its private placement offering (the
"Offering") of 12,500,000 non flow-through units (the
"Units") and, 1,000,000 common shares to be issued on a
"flow-through" basis ( the "Flow-Through Shares"), for
aggregate gross proceeds to the Company of $5,500,000.
The Offering was priced at $0.40 per Unit consisting of one common
share and one common share purchase warrant and $0.50 per Flow-Through Share.
Each common share purchase warrant will entitle the holder to acquire one
common share of the Company at a price of $0.60 per common share for a period
of 18 months expiring on June 17, 2012.
A cash commission has been paid to the Agents of $330,000 as well as
749,999 broker warrants exercisable for a period of 18 months at an exercise
price of $0.60 per common share expiring on June 17, 2012. All securities
issued in connection with the Offering will be subject to a hold period
expiring on April 18, 2011.
Encanto's
President and CEO, Jim Walchuck, states, "We
are pleased to exit 2010 knowing that the Company is now in a strong
financial position to move forward. We anticipate being in a position to
release the NI 43-101 Report in late January to early February which should
be the watershed moment we have all been waiting for."
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
President and CEO
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