Brokered deal will fund pre-feasibility study on Muskowekwan property
By Devika Patel
Knoxville, Tenn., Nov. 29 - Encanto Potash Corp. said it will conduct a private placement of shares and units. Primary Capital Inc. and Industrial Alliance Securities Inc. are the co-lead agents. The securities will be sold on a best-efforts basis for C$5.5 million.
The company will sell up to 1 million flow-through common shares at C$0.50 each, generating up to C$500,000 of proceeds. The price per share is a 14.94% premium to the Nov. 26 closing share price of C$0.435.
Encanto Potash also will sell 12.5 million units at C$0.40 apiece for a total of up to C$5 million.
Each unit will consist of one common share and one warrant, with each warrant exercisable at C$0.60 for 18 months. The strike price is a 37.93% premium to the Nov. 26 closing share price.
Proceeds will be used to complete a pre-feasibility study on the Muskowekwan property, for the company's ongoing exploration programs on its other properties in Saskatchewan and general working capital purposes.
Encanto Potash is a natural resource company based in Vancouver, B.C.
| Issuer: | Encanto Potash Corp.
|
| Issue: | Flow-through common shares, units of one common share and one warrant
|
| Amount: | C$6 million
|
| Agent: | Primary Capital Inc., Industrial Alliance Securities Inc. (co-leads)
|
| Pricing date: | Nov. 29
|
| Stock symbol: | TSX Venture: EPO
|
| Stock price: | C$0.435 at close Nov. 26
|
| Market capitalization: | C$93.5 million
|
|
|
| Flow-through shares
|
| Amount: | C$500,000
|
| Shares: | 1 million
|
| Price: | C$0.50
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$5 million
|
| Units: | 12.5 million
|
| Price: | C$0.40
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.60
|
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