Encanto Potash Corp. formalizes deal to acquire potash assets from Raytec Metals Corp.
Trading Symbol: TSXV EPO.V
VANCOUVER, July 30 /CNW/ - Encanto Potash Corp. ("Encanto" or the
"Company") wishes to provide an update to its previously announced news
release dated June 16, 2009. Encanto is pleased to report that it has entered
into agreements (the "Agreements"), replacing the original letter of intent,
to formalize the acquisition of all of the potash interests of Raytec Metals
Corp. ("Raytec").
Raytec will transfer all of its interests in its Spar and KP452 potash
properties in Saskatchewan to Encanto, or its subsidiary, in exchange for
19,846,525 common shares of Encanto, at a deemed total value of $4,961,631.
Raytec will also incur $6,500,000 in expenditures on Encanto's existing potash
properties and Raytec's potash properties (collectively, the "Potash
Properties") by December 31, 2009, to earn a 51% interest in the Potash
Properties owned by Encanto. Encanto will have the option to repurchase the
51% Raytec interest in the Potash Properties for 26,000,000 common shares of
Encanto.
The Agreements remain subject to TSX Venture Exchange approval. A
finders' fee will be payable in accordance with TSX Venture Exchange policies.
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. Encanto has agreements with seven First Nations
Peoples to assist them in developing potash resources on their lands, which
are located within a radius of about 80 kilometres, and cover an aggregate
area of over 58,000 hectares in South-Eastern Saskatchewan.
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. |
