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.