Business
Encanto completes purchase of Raytec potash assets
FUNDING OF $6.5 MILLION CONCURRENT WITH PURCHASE Trading Symbol: TSXV EPO.V VANCOUVER, Aug. 12 /...
About this update from Encanto Potash Corp.
[{"type":"text","content":"\n\n\n\nFUNDING OF $6.5 MILLION CONCURRENT WITH PURCHASE\n\nTrading Symbol: TSXV EPO.V\n\n\nVANCOUVER, Aug. 12 /CNW/ - Encanto Potash Corp. ("Encanto" or the\n"Company") is pleased to announce that it has closed its previously announced\ntransactions with Raytec Metals Corp. ("Raytec").\n\n\nRaytec has transferred all of its interests in its potash properties in\nSaskatchewan to Encanto's operating subsidiary in exchange for 19,846,525\ncommon shares of Encanto, at a deemed total value of $0.25 per share\n($4,961,631 in total). One of the Raytec properties, Permit KP 441, which is\npart of the Spar Property, is the subject of a technical report (the "Report")\nprepared by Agapito Associates, Inc., dated July 29, 2009 the authors of which\nare Dr. Michael Hardy, P.Eng, Dr. Douglas F. Hambley, P.Eng, and Joseph E.\nCrawford, L.P.G. The Report will be filed on SEDAR concurrently with this news\nrelease. The following is a summary of the data in Tables 4 and 5 of the\nReport outlining the resources in KP 441:\n\n\n Mineral Resource in KP 441\n\n-------------------------------------------------------------------------\n\n (1)Average Average\n Total Grade Carnallite Average (2)Recov-\n Thickness over over Insolubles erable\n over Potash Potash over K(2)O\n Potash Zone Zone Potash Resource\nMember Zone (m) (% K(2)O) (% MgCl(2)) Zone (%) (Mt)\n\n-------------------------------------------------------------------------\n Inferred Mineral Resource\n-------------------------------------------------------------------------\nUpper\n Belle\n Plaine 2.98 14.54 0.28 7.90 4.43\nLower\n Belle\n Plaine 1.34 30.45 0.23 1.89 7.05\nTotal 24.31 0.25 4.21 11.48\n-------------------------------------------------------------------------\n Indicated Mineral Resource\n-------------------------------------------------------------------------\nLower\n Patience\n Lake 3.06 31.02 0.24 3.87 5.09\nUpper\n Belle\n Plaine 2.97 14.73 0.28 7.92 3.44\nLower\n Belle\n Plaine 1.34 30.16 0.22 1.90 3.51\nTotal 26.12 0.25 4.45 12.04\n-------------------------------------------------------------------------\n(1) Average grade calculated using re-assayed data where available and\n historic assay data elsewhere\n(2) Recoverable in-place K(2)O tonnes assuming a density of\n 2.08 tonnes/m(3) and an overall recovery of 36% (10% geologic a...