ENCANTO POTASH CORP. ENTERS INTO JOINT VENTURE FOR THE EXLORATION OF OIL AND GAS ASSETS ON FIRST NATIONS LANDS IN SASKATCHEWAN
VANCOUVER, Sept. 16
Trading Symbol: TSXV EPO.V
VANCOUVER, Sept. 16 /CNW/ - Encanto Potash Corp. ("Encanto") is pleased
to announce that its operating subsidiary, Encanto Resources Ltd. (the
"Company"), has entered into a joint venture agreement (the "Sundance
Agreement") with Sundance Energy Corporation ("Sundance") pursuant to
the Company and five First Nations intend to grant Sundance a
license on all of the seismic data (2D and 3D) owned by the Company
and the First Nations with respect to the First Nations' lands in
consideration for 10,000,000 shares of Sundance (5,000,000 for the
Company and 1,000,000 to each of the First Nations), which will be
replaced by an aggregate $2,000,000 in cash by June 15, 2011 if
Sundance has not completed an IPO or an RTO to become a public
company before April 1, 2011.
the Company will enter into a joint venture agreement with each of
the First Nations (the "JV Agreements") with respect to the
exploration and development of oil and gas on the First Nations'
lands on the terms set out in the JV Agreements, which the Company
will then assign to Sundance in consideration for $100,000 and
2,800,000 shares of Sundance for each JV Agreement so assigned.
To date, JV Agreements, Seismic License Agreements and Farmout
Agreements have been entered into with the Ochapowace and Muskowekwan
First Nations, and in accordance with the Sundance Agreement the Company
has, with the approvals of the two First Nations, assigned 100% of its
rights, title, interests and obligations there under to Sundance. The
Company has received $200,000 from Sundance to date as well as an
aggregate 5,600,000 additional shares of Sundance in due course. After
the acquisition of the 5,600,000 shares from Sundance Encanto's
ownership in Sundance will total 10,600,000 common shares equaling 31%
of the current issued and outstanding common shares of Sundance. The
JV, Seismic License and Farmout Agreements with the other three First
Nations are pending various approvals and execution of documentation.
Sundance Energy Corporation is a private Company incorporated pursuant
to the laws of the Province of Alberta. Sundance's senior management
consists of a group of multi disciplined professionals with extensive
domestic and international industry experience along with extensive
domestic First Nation experience. Sundance is also involved in
exploration and development in the Samson (Wetaskiwin) area in Alberta.
It is Sundance's intention to become a publicly listed and traded
company in due course by of way of a reverse takeover (RTO) of an
existing public company or by way of an initial public offering (IPO).
Mr. James Walchuck, President of Encanto states, "We are very pleased to
enter into this agreement with Sundance which will mutually benefit the
Company and the First Nations while allowing Encanto to continue
focusing on its core business of Potash exploration."
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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBLITIY 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.