Encanto Potash Corp. said Oct. 4 that it plans to raise about C$9.5 million from a private placement of convertible debentures.

The debentures will be secured by the company's assets, bear an annual interest rate of 5% and mature 18 months from the issuance date. These will be convertible into common shares of the company at 25 cents apiece at any time before the maturity date.

Encanto Potash plans to use the proceeds to discharge and replace a portion of the principal owing under its previous debentures that matured in September 2017, as well as to offset other outstanding payables.