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Encanto Potash Corp. Updates Designation Process
May 24, 2011
VANCOUVER - Encanto Potash Corp. (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.
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
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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For further
information, please contact:
James Walchuck,
President & CEO
Encanto Potash
Tel: 604.683.2402
Vanguard Shareholder Solutions
Tel: 604.608.0824
Toll Free: 866.918.0824
ir@vanguardsolutions.ca
www.encantopotash.com
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