Encanto Potash Corp. (CVE:EPO) (PINK:ENCTF) saw bullish traders pour in after the company announced they might acquire additional properties.
EPO stock price added an impressive 17.3% under a trading volume of 3.6 million, or nearly nearly 4 times heavier than the usual 972 thousand. EPO price technically broke out above the most recent resistance at 29.5 cents per share, leaving its loose price channel. There is a high possibility of this price rally extending further up on Monday because the related news was very positive.
The demand for EPO stock shot up after the company announced they were presented with an opportunity to acquire significant additional lands under the current join venture agreement with Muskowekwan Resources Ltd. and Muskowekwan First Nation.
Encanto already agreed to issue 400 thousand shares of their common stock and the same amount of warrants in consideration of this opportunity. The warrant would be convertible at 26 cents per share.
The newly offered lands consist approximately of 42.8 thousand acres. The acquisition would mean a 3.5 times increase in areal from the currently held Home Reserve lands.
The addition of the lands remains subject to an upcoming sub-surface land designation vote which will take place on February 25, 2012 and hopefully for Encanto will be in favor of a mineral designation.
