Under the funding agreement, which was signed on 15 September 2017, GEM Investments America LLC and GEM Global Yield LLC SCS have agreed to invest up to CAN$100 million over the course of the next three years. Upon a drawdown notice being issued from the company, shares will be issued at a price 90% of the market price subject to a $.05 per share minimum.
Encanto claims that these proceeds will be used to start the engineering and design phase of a mine in anticipation of a shovel-ready construction date of September 2019. Under a joint venture agreement that was reached with Muskowekwan Resources Ltd and Chief Reginald Bellerose of the First Nation’s Muskowekwan tribe, Encanto claims that it has secured the mineral rights for a the mine and has already completed the related preliminary studies. In the interim, Encanto claims that the proceeds will used for the procurement and supply of third party potash under a 20-year, 5 million tpy potash offtake agreement. This agreement was signed on 30 December last year with the National Federation of Farmers’ Procurement, Processing and Retailing Cooperatives of India Ltd (NACOF) registered under the Ministry of Agriculture, Government of India.
The CEO of Encanto, Stavros Daskos, said: “This commitment secures funding for Encanto's mining and supply plan over the next three years. We will continue working closely with our land partners at Muskowekwan Resources Ltd to ensure First Nation's involvement in the project. GEM's commitment validates our strategy to seek long-term strategic partners."
Read the article online at: https://www.worldfertilizer.com/potash/21092017/encanto-potash-secures-capital-commitment-from-gem-global/