Vancouver (pcJ News Briefs) – Encanto Potash Corp. (TSX-V: EPO) has executed a $70 million financing agreement with Taylor-Dejongh.
Taylor-Dejongh will provide investor funding to Encanto for an initial equity investment of $10 million for general working capital requirements and a subsequent project equity investment of $60 million for the completion of project specific activities including the completion of a Bankability Feasibility Study (BFS).
Encanto and Muskowekwan Resources Ltd. have a joint venture agreement to develop the Muskowekwan Potash Project – the first mining project in Saskatchewan, Canada, on First Nations land.
“Encanto’s well devised business plan to develop potash resources on the heels of a significant off take agreement allows Taylor-DeJongh to procure the required financing support for a $10 Million equity investment targeted to close in May, 2017. We will in parallel be finalizing a project equity facility commitment of $60 Million later in June,” commented Ibrahim Mardam-Bey, Chief Commercial Officer for Taylor-DeJongh.
“Taylor-DeJongh’s extensive track financing record in the mining sector will be a cornerstone in Encanto’s next phase of development. We are excited to add TDJ to our core team of advisors,” said Stavros Daskos, President & CEO of Encanto Potash.
Taylor-DeJongh is an energy and infrastructure investment-banking firm. The firm provides independent strategic and financial advisory services to a global clientele in the development, structuring, negotiating and financing of major capital investments in mining, energy and infrastructure. The firm has over 30 years of experience in structuring complex transactions in more than 110 countries, with an aggregate value of over US $250 billion.
photo credit: Encanto Potash