Encanto Announces Closing of $2.5 Million Convertible Debenture

About this update from Encanto Potash Corp.

[{"type":"text","content":"\n\n\n\n\n\nTRADING SYMBOL:  TSXV:EPO\n\n\nVANCOUVER, Nov. 28, 2012 /CNW/ - Encanto Potash Corp. (\"Encanto\" or the\n \"Company\") (TSXV: EPO and OTCQX: ENCTF) is pleased to announce the\n completion of an aggregate $2.5 million principal amount 5% secured\n convertible debenture.  The principal amount of the debenture is\n convertible in whole or in part at the option of the subscriber into\n common shares of the Company at a price of $0.25 per common share until\n November 28, 2014.\n\n\nProvided the weighted average trading price of Encanto's common shares\n are in excess of $0.50 for 20 consecutive days, the Company may prepay\n the instrument in whole or in part prior to the maturity date by\n providing 60 days written notice to the subscriber.  A finders' fee of\n 5% of the gross proceeds was paid in connection with the financing.  \n The Company intends to use the proceeds to further develop the\n Pre-Feasibility Study on the Muskowekwan First Nation property (\"PFS\")\n and provide general working capital for the Company.  The securities\n issued in connection with this Offering are subject to a 4-month \"hold\n period\" as prescribed by the TSX Venture Exchange and applicable\n securities laws expiring March 29, 2013.\n\n\nThe investor is a prominent Kuwaiti businessman who has significant\n investments in the automotive, financial and natural resource sectors.\n\n\nEncanto expects the delivery of the PFS in early Q1 of 2013.  Encanto\n anticipates the additional 3D Seismic Program on the Muskowekwan TLE\n lands will be completed in early December 2012.  North Rim Exploration\n Ltd. will be recalculating an upgraded resource estimate with this\n additional data.  This new resource estimate is anticipated in early\n 2013.  The Company is confident the previous drill holes on the TLE\n lands, combined with the findings of the additional 3D seismic data,\n will result in a significant movement of the Inferred Resources into\n the Measured and Indicated Resource category thereby increasing the\n corresponding mine life associated with the Measured and Indicated\n Resource.\n\n\nAbout Encanto:\n\n\nEncanto Potash Corp. is a TSX Venture Exchange listed and OTCQX traded\n Canadian resource company engaged in the development of potash\n properties in the Province of Saskatchewa...

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