Canadian Mining Journal

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POTASH: Encanto secures $100 million injection



Solution mining is planned for the Muskowekwan potash mine in Saskatchewan. (Credit: Encanto Potash)

VANCOUVER – Encanto Potash Corp. of Vancouver has secured a commitment for $100 million of funding over the next three years from GEM Investments American and GEM Global Yield. As Encanto draws down the money, it will issue shares at a price 90% of the market value, subject to a $0.05/share minimum.

The money  will be used to begin engineering and design work for the Muskowekwan potash mine, a joint venture of Encanto and Muskowekwan Resources. The proposed solution potash mine lies mainly on traditional land of the Muskowekwan First Nation. (See the June 2017 of CMJ.)

Some of the money will also be used to buy potash from third parties, as Encanto has already signed supply contracts with a farmers’ co-op in India.

Stavros Daskos, Encanto CEO, said, “This commitment secures funding for Encanto’s mining and supply plan over the next three years. We will continue working closely with our land partners at Muskowekwan Resources Ltd to ensure First Nation’s involvement in the project. GEM’s commitment validates our strategy to seek long term strategic partners.”

More about the project is available at www.EncantoPotash.com.


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1 Comment » for POTASH: Encanto secures $100 million injection
  1. Harvey Haugen says:

    Congratulations. Take $10 M of this money, get an agreement with [the village of] Beechy, add some government grants and build a 250,000 tpa Beechy solution mine and Encanto will be worth something. With $30 operating cost, cash flow from this little mine will build as much capacity as you want. Sales without production won’t go very far.

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