FIRST IN HISTORY PROVINCIAL POTASH MINING
REGULATIONS TO APPLY ON FEDERAL FIRST NATIONS RESERVE
LAND
TSXV: EPO
VANCOUVER, Feb. 27, 2017 /CNW/ - Encanto Potash Corp.
("Encanto" or the "Company") (TSXV: EPO) is
pleased to advise that, together with their project partners, the
Muskowekwan First Nation, the successfully signed Tripartite
Agreement is expected to lead to the First Nations Commercial and
Industrial Development Act ("FNCIDA") being finalized this Spring.
The Tripartite agreement was signed by Muskowekwan First Nation
Chief Reginald Bellerose, the
Honourable Minister of Indigenous and Northern Affairs,
Carolyn Bennett on behalf of the
Canadian Federal Government and the Honourable Provincial Minister
for the Economy Bill Boyd on behalf
of the Saskatchewan Provincial Government.
Muskowekwan First Nation Chief Reginald
Bellerose commented that "by achieving this milestone, the
first ever for such a planned large scale operation in Canada, we have been breaking entirely new
ground and not only moving to ensure that we ourselves are a
significant resource player in Canada for generations to come, but paving the
way for other First Nations to achieve self-source revenues and a
self-dictated future full of promise."
"There were many hands at all levels of government demonstrating
an unprecedented level of cooperation and support between
themselves and our own Nation. It took some time, but all involved
wanted to ensure that we got this precedent setting process
entirely right".
According to the FNCIDA website, the process enables a
First Nation that has decided to pursue a large scale commercial or
industrial on-reserve project to request the Government of
Canada to develop regulations
applying to a specific project on a specific piece of reserve
land. FNCIDA works by essentially reproducing the
provincial rules and regulations that apply to similar large-scale
commercial or industrial projects off reserves and applying them to
a specific on-reserve project. This approach, called incorporation
by reference, ensures that both on and off-reserve projects are
subject to similar regulatory regimes. It increases the certainty
for investors, developers and the public while minimizing
costs.
This case-by-case approach means that the unique needs and
circumstances of each project can be respected, as can the
Government of Canada's unique
relationship with, and responsibilities toward, First Nations.
Agreements between the Government of Canada, individual First Nations and the
provincial government will be developed to enable the province to
carry out the monitoring and enforcement of FNCIDA regulations for
particular projects. In practice, this means that projects
regulated under FNCIDA are required to meet similar standards
as those that apply in the rest of the province and it gives
investors and developers certainty by ensuring that they are
dealing with regulations and regulators that are well known and
understood.
The goal of FNCIDA is to enable First Nations to
develop their economies, provide more tools to manage their
resources, increase self-sufficiency and enhance their quality of
life.
Notice of the intent to form these mining regulations was
published by the Governor in Council in the Federal government
online newspaper the Gazette (Canada Gazette – Part I) in June,
2016. The final step in this process would be a second publication
(Canada Gazette – Part II) which the Company expects in the near
term.
Encanto President, Stavros Daskos
commented "I'd like to personally thank Chief Bellerose for his
instrumental and tireless efforts particularly over the last 18
months in bringing this process to a successful conclusion. This
was entirely a government (First Nation) to government (Canadian
Federal Government) to government (Province of Saskatchewan) transaction which will result in
a historic agreement between all parties. This represents another
critical piece being in place to allow for the eventual development
of the first potash mine on First Nation land in Canada and the first whatsoever to complete
the FNCIDA process for such a major project."
ABOUT ENCANTO:
Encanto Potash Corp. is a TSX Venture Exchange listed and traded
Canadian resource company engaged in the development of potash
properties in the Province of Saskatchewan, Canada, the largest producing
potash region in the world. Through a joint venture agreement with
Muskowekwan Resources Ltd. on our flagship property, Encanto has a
project land package which totals approximately 61,000 largely
contiguous acres. A Pre-Feasibility Study dated February 28, 2013 titled "Encanto Potash Corp.
Technical Report Summarizing the Preliminary Feasibility Study for
the Muskowekwan First Nations Home Reserve Project in South Eastern
Saskatchewan, Canada" confirms the Proven and Probable KCI Reserves
totaling 162 MMt grading 28% (average) which supports primary and
secondary mining for over 50 years at an assumed annual rate
extraction rate of 2.8 million tonnes.
The technical content of this news release has been reviewed and
approved by James Walchuck, a
qualified person as defined by NI 43-101.
For additional information about Encanto Potash Corp., please
visit the Company's website at www.encantopotash.com or review the
Company's documents filed on www.sedar.com.
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 SATISFACTION OF ANY APPLICABLE CONDITIONS IN
RESPECT OF THE MMTC MOU AND THE OFFTAKE AGREEMENT INCLUDING THOSE
IN RELATION TO PROJECT TIMELINES, THE ASSUMPTIONS AND ESTIMATES IN
THE COMPANY'S PRE-FEASIBILITY STUDY OF THE MUSKOWEKWAN PROJECT (THE
"PFS") PROVING TO BE ACCURATE OVER TIME INCLUDING APPLICABLE
RESOURCE ESTIMATES, THE POTENTIAL FOR DELAYS AND INCREASES TO
PROJECT COSTS AS A RESULT OF POTENTIAL CHANGES IN PLANNED
PRODUCTION RATES, CHANGES IN WORLD COMMODITY MARKETS OR EQUITY
MARKETS, THE ADEQUACY OF THE COMPANY'S FINANCIAL RESOURCES AND THE
AVAILABILITY OF ADDITIONAL FINANCING ON REASONABLE TERMS OR AT ALL,
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. READERS ARE
CAUTIONED THAT CURRENT MARKET PRICES FOR THE COMPANY'S PROPOSED
PRODUCTS ARE MATERIALLY DIFFERENT THAN THE ESTIMATES USED IN THE
PFS AND CHANGES TO THE PROPOSED PRODUCTION RATE WOULD BE EXPECTED
TO CAUSE MATERIAL CHANGES TO THE REQUIRED CAPITAL COSTS OF THE
PROJECT. 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.
SOURCE Encanto Potash Corp.