Encanto Potash Corp. (CVE:EPO) (PINK:ENCTF) stock jumped up along with the general market despite the company posting controversial news.
EPO stock price increased 5.7% during Monday’s trading under a trading volume of 3.6 million, which was more than six times the average 588 thousand. With this move Encanto stock broke out of a consolidation range after spiking through the resistance at 27 cents per share, but it still trades below the 200-day moving average which obviously works as a stubborn price growth limiter right now.
The buying pressure increased after Encanto published controversial news. The company said on Monday, November 28, that the Treaty Land Entitlement designation vote occurred two days earlier. Theoretically, the designation was not successful since less than half of the eligible members of The Muskowekwan Band voted in favor.
However, the eligibility of some voters was questioned in result and thus final decision will be announced a couple of days from now after a thorough review and validation by Aboriginal Affairs Northern Development Canada.
The addition of Treaty Land Entitlement acreage to the Muskowekwan First Nation property would allow Encanto to substantially expand their resource estimates on this promising land. The preliminary economic assessment published in August showed indicated and inferred resources of 79.1 million tons and 60.5 million tons, respectively, assuming a solution mining method.
