POTASH: Encanto signs offtake agreement with Indian co-op

VANCOUVER – Encanto Potash Corp. has signed the foundation offtake agreement for 5.0 million t/y with the National Federation of Farmers’ Procurement,  Processing and Retailing Co-operatives of India (NACOF). The co-op represents farmers in 25 states across India. Encanto and its joint venture partner, Muskowekwan First Nations (MFN) are preparing a feasibility study on a potash project in Saskatchewan. The proposed solution mine could produce 2.8 million t/y of K62 grade potash (98% KCl). It is supported by 162.0 million tonnes of proven and probable reserves plus 31.3 million tonnes of indicated resources grading 28.1% KCl and 158.7 million tonnes of inferred resources grading 29.53%. The initial capital expenditure is pegged at $2.86 billion. The agreement with NACOF positions Encanto to transition the previously announced memorandum of  understanding with Metal Mineral Trading Co. of India into a commercial marketing and distribution agreement to provide an additional 2.0 million tonnes of potash annually. Encanto is exploration third party sources as a short term solution to fulfilling the contract. Please visit www.EncantoPotash.com.