Encanto Potash Corp., an emerging potash development company, is advancing the Muskowekwan property in Saskatchewan in partnership with the Muskowekwan First Nation. The company announced the closing of its $100 million-facility with GEM Investments America, LLC and GEM Global Yield LLC SCS. Taylor-DeJongh Ltd, who has acted as financial advisor to the Company, has an extensive track record in financing large-scale infrastructure projects with focus on the mining sector. This helped Taylor-DeJongh set up an innovative financing structure to meet Encanto’s needs.
“We are very pleased to act as Financial Advisor to Encanto Potash on this transaction,” Ibrahim Mardam-Bey, CCO of Taylor-DeJongh, said, adding that “we were supported by a great Encanto team and are confident that they are now able to begin executing on their business plan in this exciting sector. Taylor-DeJongh is also very proud to be a part of the positive social impact this project will provide to First Nations communities.”
The Muskowekwan Project involves 100% mineral rights on 61,400 largely contiguous acres with further potential for expansion. The project contains 162.0 million tons of recoverable KCI Proven and Probable Reserves. It also contains a recoverable Indicated KCI resource of 31.3 million tons and an Inferred KCI resource of 158.7 million tons. Pro-feasibility study was completed in February 2013 and the existing resources support long life operation with production expansion opportunities. The planned solution extraction methodology will have a low environmental footprint and the current 20-year off-take agreement will provide five million tons of potash annually.