NEWS RELEASE
ENCANTO
POTASH CORP. EXERCISES REPURCHASE OPTION
26,000,000 SHARES ISSUED TO LION ENERGY CORP.
February 9, 2010
FOR IMMEDIATE RELEASE
Trading Symbol: TSXV EPO.V
Encanto Potash Corp. ("the Company") wishes to announce that it
has exercised its option to repurchase a 51% interest of the Company's
existing potash properties (the "Potash Properties") from Lion
Energy Corp. (formerly Raytec Metals Corp.) ("Lion") for
26,000,000 common shares of the Company. Lion acquired its interest
in the Potash Properties by incurring $6,500,000 in expenditures on the
Potash Properties prior to December 31, 2009. Lion will then hold
an aggregate 45,846,525 shares of the Company equal to 27.6% of the
Company's 166,252,936 issued shares.
Mr. James Walchuck, President of the Company states, "The great
drill results we just released on the Muskowekwan Prospect have made the
decision to exercise our option a very easy one. Along with our
Spar Prospect we now have a second high grade prospect with excellent
resource potential."
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.
To find out more about Encanto Potash Corp., please visit the Company
website at www.encantopotash.com or
review the documents filed on www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
"James Walchuck"
Per: James Walchuck, President and CEO
For further information, please contact:
James Walchuck
President and CEO
Tel: 604.683.2402
Keith Schaefer
Vanguard Shareholder Solutions
Tel: 604.608.0824
Toll free: 1.866.918.0824
www.encantopotash.com
ir@vanguardsolutions.ca
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.
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