Canadian Mining Journal

News

POTASH: Encanto, Muskowekwan secure federal funds for mine



SASKATCHEWAN – The Muskowekwan First Nation and Encanto Potash Corp. of Vancouver have confirmed that the government of Canada will provide funding for the upcoming engineering work for the Muskowekwan potash solution mine near the town of Lestock.

Encanto president CEO Stavros Daskos and Muskowekwan Chief Reginald Bellerose walk the project land. (Image: Encanto Potash Corp.)

The funds will be provided by Indigenous Services Canada. The money will be used to finalize the environmental gap analysis, water study and value engineering study as the project moves toward being shovel ready by November 2019. No amount for the funding was made available.

The Muskowekwan First Nation has a substantial ownership stake in the project because most of the project is located on their lands. Encanto has already secured a 20-year offtake agreement with a large farmers’ co-operative in India. The project also enjoys a $100 million subscription agreement with Global Emerging Markets.

Encanto says the project has resources to support mining for more than 50 years at a rate of 2.8 million t/y, thanks to proven and probable reserves of 162 million tonnes grading 28% potassium chloride.

Additional information is posted at www.EncantoPotash.com.