Encanto Potash Corp. Exercises Repurchase Option
26,000,000 SHARES ISSUED TO LION ENERGY CORP.
Trading Symbol: TSXV EPO.V
VANCOUVER, Feb. 9 /CNW/ - Encanto Potash Corp. ("the Company") wishes to
announce that it has exercised its option to repurchase a 51% interest of the
Company's existing potash properties (the "Potash Properties") from Lion
Energy Corp. (formerly Raytec Metals Corp.) ("Lion") for 26,000,000 common
shares of the Company. Lion acquired its interest in the Potash Properties by
incurring $6,500,000 in expenditures on the Potash Properties prior to
December 31, 2009. Lion will then hold an aggregate 45,846,525 shares of the
Company equal to 27.6% of the Company's 166,252,936 issued shares.
Mr. James Walchuck, President of the Company states, "The great drill
results we just released on the Muskowekwan Prospect have made the decision to
exercise our option a very easy one. Along with our Spar Prospect we now have
a second high grade prospect with excellent resource potential."
About Encanto:
Encanto Potash Corp. is a TSX Venture Exchange-listed Canadian resource
company engaged in the exploration and development of potash properties in the
Province of Saskatchewan, Canada - the largest producing region for potash in
the world.
To find out more about Encanto Potash Corp., please visit the Company
website at www.encantopotash.com or review the documents filed on
www.sedar.com.
<<
ON BEHALF OF THE BOARD OF DIRECTORS
"James Walchuck"
Per: ----------------------
James Walchuck
President and CEO
>>
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
THE FOREGOING INFORMATION MAY CONTAIN FORWARD-LOOKING INFORMATION
RELATING TO THE FUTURE PERFORMANCE OF THE COMPANY. FORWARD LOOKING INFORMATION
IS SUBJECT TO A NUMBER OF KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
ANTICIPATED IN OUR FORWARD LOOKING STATEMENTS. SUCH RISKS AND OTHER FACTORS
INCLUDE, AMONG OTHERS, THE ACTUAL RESULTS OF EXPLORATION ACTIVITIES, CHANGES
IN WORLD COMMODITY MARKETS OR EQUITY MARKETS, THE RISKS OF THE MINING INDUSTRY
INCLUDING, WITHOUT LIMITATION, THOSE ASSOCIATED WITH THE ENVIRONMENT, DELAYS
IN OBTAINING GOVERNMENTAL APPROVALS, PERMITS OR FINANCING OR IN THE COMPLETION
OF DEVELOPMENT OR CONSTRUCTION ACTIVITIES, TITLE DISPUTES, CHANGE IN
GOVERNMENT AND CHANGES TO REGULATIONS AFFECTING THE MINING INDUSTRY, AND OTHER
RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS
WITH THE CANADIAN SECURITIES ADMINISTRATORS (AVAILABLE AT WWW.SEDAR.COM).
FORWARD-LOOKING STATEMENTS ARE MADE BASED ON VARIOUS ASSUMPTIONS AND ON
MANAGEMENT'S BELIEFS, ESTIMATES AND OPINIONS ON THE DATE THE STATEMENTS ARE
MADE. SHOULD ONE OR MORE OF THESE RISKS AND UNCERTAINTIES MATERIALIZE, OR
SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY
MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING INFORMATION CONTAINED
HEREIN. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING
STATEMENTS IF THESE ASSUMPTIONS, BELIEFS, ESTIMATES AND OPINIONS OR OTHER
CIRCUMSTANCES SHOULD CHANGE, EXCEPT AS REQUIRED BY APPLICABLE LAW.
-30-
/For further information: James Walchuck, President and CEO, Tel: (604)
683-2402; Keith Schaefer, Vanguard Shareholder Solutions, Tel: (604) 608-0824,
Toll Free: 1-866-918-0824/
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