SASKATOON, Saskatchewan -- (Business Wire)
Gensource Potash Corporation (“Gensource” or the “Company”)
(TSX.V: GSP) is pleased to announce a proposed best efforts
non-brokered private placement for gross proceeds of up to $3,000,000
(the “Offering”). The Offering will consist of the sale of up to
27,272,728 units of the Company (the “Units”) at a price of $0.11
per Unit. Each Unit will consist of one common share and 1/2 of one
purchase warrant. Each whole warrant will entitle the holder to acquire
one share for $0.17 for a period of 24 months after closing. The terms
of the financing were established in the context of the market over the
last 30 days.
The Company intends to use the proceeds from the Offering to initiate
geological and engineering study work towards a second project module in
the Vanguard Project area (“Vanguard Two”). Proceeds will also be used
for matters relating to the completion of the proposed Joint Venture
signed with Essel Group ME as detailed in the MOU announcement of
November 28, 2016, as well as for general working capital purposes. The
Offering will take place by way of a private placement to qualified
investors in such provinces of Canada as the Company may designate, and
otherwise in those jurisdictions where the Offering can lawfully be
made. The securities to be issued pursuant to Offering will be subject
to a statutory fourth month and one day hold period from the closing
date.
It is expected that the closing of the Offering will occur on or before
January 19, 2017 and is subject to the approval of the TSX Venture
Exchange.
Gensource’s President and CEO, Mike Ferguson commented, “We are looking
forward to closing this financing fully subscribed quickly. As indicated
by the use of proceeds, this financing will help Gensource continue to
execute its business plan in a methodical and aggressive manner, with
each successful step bringing us closer to our goal of becoming a new
and independent producer of potash.”
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on
developing the next potash production facility in that province, using
new and more efficient mining and processing methods and employing a
new-to-the-potash-industry business model that connects the consumer of
potash (agricultural producers) as directly as possible to the
production of the product. Gensource’s President and CEO, Mike Ferguson,
P.Eng., has assembled a management and technical team with direct and
specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components:
vertical integration with the market to ensure that all production
capacity built is directed to a specific market, eliminating market-side
risk, and technical innovation which will allow for a small and
economic potash production facility, the output of which can then be
directed to a single, specific market.
The technical information presented in this new release has been
reviewed and approved by Mike Ferguson, P.Eng., the President, CEO and a
Director of the Corporation, who is a qualified person according to NI
43-101 requirements.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward looking information and
Gensource cautions readers that forward looking information is based on
certain assumptions and risk factors that could cause actual results to
differ materially from the expectations of Gensource included in this
news release. This news release includes certain "forward-looking
statements”, which often, but not always, can be identified by the use
of words such as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will", or "plan". These statements are based
on information currently available to Gensource and Gensource provides
no assurance that actual results will meet management's expectations.
Forward-looking statements include estimates and statements with respect
to Gensource’s future plans, objectives or goals, to the effect that
Gensource or management expects a stated condition or result to occur,
including settlement of a definitive joint venture agreement with the
Essel Group on the terms of the MOU or at all, the expected timing for
release of a reserve estimate and a feasibility study and whether or not
the study will conclude that mineral production is feasible on a
technical or economic basis, and the establishment of vertical
integration partnerships and the sourcing of end use potash purchasers.
Since forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results relating to, among other things,
settlement of a definitive joint venture agreement with the Essel Group,
results of exploration, the economics of processing methods, project
development, reclamation and capital costs of Gensource’s mineral
properties, the ability to complete a feasibility which supports the
technical and economic viability of mineral production, Gensource’s
financial condition and prospects, the ability to establish viable
vertical integration partnerships and the sourcing of end use potash
purchasers, including approval of the Yancoal Canada off take agreement
by its parent company, could differ materially from those currently
anticipated in such statements for many reasons such as: failure to
settle a definitive joint venture agreement with the Essel Group on the
terms as announced or at all, and advance and finance the project in
accordance with the terms of the definitive joint venture agreement; an
inability to finance and/or complete an update of the resource estimate
to a reserve estimate, and a feasibility study which supports the
technical and economic viability of mineral production; changes in
general economic conditions and conditions in the financial markets; the
ability to find distributors and source off-take agreements including
approval of the Yancoal Canada off take agreement by its parent company;
changes in demand and prices for potash; litigation, legislative,
environmental and other judicial, regulatory, political and competitive
developments; technological and operational difficulties encountered in
connection with Gensource’s activities; and other matters discussed in
this news release and in filings made with securities regulators. This
list is not exhaustive of the factors that may affect any of Gensource’s
forward-looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on Gensource’s
forward-looking statements. Gensource does not undertake to update any
forward-looking statement that may be made from time to time by
Gensource or on its behalf, except in accordance with applicable
securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170113005795/en/
Contacts:
Gensource Potash Corporation:
Mike Ferguson, 306-974-6414
President
& CEO
mike@gensource.ca
Source: Gensource Potash Corporation
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