VANCOUVER, Oct. 10, 2017 /CNW/ - Encanto Potash Corp.
(TSX-V: EPO) ("Encanto" or the "Company") an emerging potash
development, Mining and Operating company that is advancing the
Muskowekwan property in Saskatchewan in partnership with the
Muskowekwan First Nation, announced the closing of its $100 million equity facility with GEM Investments
America, LLC and GEM Global Yield LLC SCS. The first drawdown under
the facility agreement is expected by Oct
15th, 2017 which will fund engineering studies for the
proposed potash mine.
Features of the Muskowekwan Project
- 100% mineral rights on 61,400 largely contiguous acres with
potential to expand
- First Nations partnership provides a critical advantage it
reduces permitting and production timelines
- Pre-Feasibility study completed and results released
February 4, 2013
-
- Proven & Probable Reserves – 162 MMt @ 27.92% KCI
- Indicated Resources – 31.3 MMt @ 28.12% KCI
- Inferred Resources – 158.7 MMt @ 29.53% KCI
- Planned solution extraction methodology will have a low
environmental footprint
- Existing resource supports long life operation together with
production expansion opportunities
- 20-year offtake agreement in place with the National Federation
of Farmers' Procurement, Processing, and Retailing Cooperatives of
India Ltd., ("NACOF") registered under the Ministry of Agriculture,
Government of India to provide
five million tonnes of potash annually
Taylor-DeJongh Ltd, acted as financial advisor to the Company.
Its extensive track record in financing large-scale infrastructure
projects, along with specific experience in the mining sector,
enabled Taylor-DeJongh to design an innovative financing structure
to meet Encanto's needs.
"We are very pleased to act as Financial Advisor to Encanto
Potash on this transaction," stated Ibrahim Mardam-Bey, CCO of
Taylor-DeJongh. "We were supported by a great Encanto team
and are confident that they are now able to begin executing on
their business plan in this exciting sector. Taylor-DeJongh is also
very proud to be a part of the positive social impact this project
will provide to First Nations communities."
"Meeting this financing milestone means that we will be able to
continue to advance the Muskowekwan mine," added Stavros Daskos, CEO of Encanto. "This is a
significant opportunity for the Company and our First Nations
partners and we thank everyone for helping us get here."
About the historic tripartite agreement:
The tripartite agreement was signed by Muskowekwan First Nation
Chief Reginald Bellerose, the
Minister of Indigenous and Northern Affairs Carolyn Bennett on behalf of the Canadian
federal government and the Provincial Minister for the Economy
Bill Boyd on behalf of the
Saskatchewan provincial
government. The goal of FNCIDA is to enable First Nations to
develop their economies, provide more tools to manage their
resources, increase self-sufficiency and enhance their quality of
life. The milestone pact is expected to lead to the first-ever
First Nations Commercial and Industrial Development Act (FNCIDA)
legislation that applies existing provincial rules to significant
projects on first nations owned reserve lands.
About Taylor-DeJongh
Taylor-DeJongh is an energy and infrastructure investment
banking firm that has ranked as a Top 10 Financial Advisor every
year since 1996. The firm provides independent strategic and
financial advisory services to a global clientele in the
development, structuring, negotiating and financing of major
capital investments in energy and infrastructure. The firm has over
30 years of experience in structuring complex transactions in more
than 110 countries, with an aggregate value of over US$250 billion.
About Encanto Potash
Encanto Potash Corp. is a TSX Venture Exchange listed and traded
Canadian Resource Company engaged in the development of potash
properties in the Province of Saskatchewan, Canada, the largest producing
potash region in the world. Through a joint venture agreement with
Muskowekwan Resources Ltd, Encanto has secured a project land
package which totals approximately 61,000 largely contiguous acres.
Pre-Feasibility Study dated February 28,
2013 titled "Encanto Potash Corp. Technical Report
Summarizing the Preliminary Feasibility Study for the Muskowekwan
First Nations Home Reserve Project in South Eastern Saskatchewan,
Canada" confirms the Proven and Probable KCI Reserves totaling 162
Mt grading 28% KCl (average) which supports primary and secondary
mining for over 50 years at an assumed annual rate extraction rate
of 2.8 Mt of MOP. The PEA dated May 24,
2017 titled " NI 43-101 Technical Report on a Preliminary
Economic Assessment and Preliminary Feasibility Study of the
Muskowekwan Potash Project, South-Eastern Saskatchewan, Canada"
summarizes an alternative development option that supports primary
and secondary mining of the Mineral Resources for 48 years at an
annual extraction rate of 3.4 Mt of MOP. On December 30, 2016, Encanto signed a 20-year
off-take agreement with the National Federation of Farmers'
Procurement, Processing, and Retailing Cooperatives of India Ltd.,
(NACOF) registered under the Ministry of Agriculture, Government of
India to supply 5 million metric
tons a year of potash.
SOURCE Taylor-DeJongh
