Encanto to Implement Share Consolidation
VANCOUVER, May 16, 2018 – Encanto Potash Corp. (“Encanto” or the “Company”) (TSXV: EPO) announces that it intends to effect a consolidation of its common shares on the basis of one (1) new common share for every ten (10) common shares outstanding effective as of May 18, 2018.
Encanto currently has 440,817,039 common shares outstanding and, following the share consolidation on a ten (10) to one (1) basis, will have approximately 44,081,704 common shares outstanding. No fractional common shares will be issued and no cash will be paid in lieu of fractional post-consolidation common shares but the number of common shares to be received by a shareholder will be rounded down to the nearest whole common share in the event that such shareholder would otherwise be entitled to receive a fractional common share.
A letter of transmittal will be sent by mail to shareholders advising that the share consolidation has taken effect and instructing shareholders to surrender the certiﬁcates evidencing their common shares for replacement certiﬁcates representing the number of common shares to which they are entitled as a result of the consolidation. Until surrendered, each certiﬁcate will be deemed for all purposes to represent the number of common shares to which the holder thereof is entitled as a result of the consolidation.
About Encanto Potash Corp.
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.
For further information: Gary Deathe, Corporate Development, Tel: (905) 510-3079