Encanto Potash Advances Its Muskowekwan Project in Saskatchewan

Encanto Potash Advances Its Muskowekwan Project in Saskatchewan

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.

 

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