Gensource Announces $1,5000,000 Non-Brokered Private Placement
Gensource Announces $1,5000,000 Non-Brokered Private Placement
SASKATOON, Saskatchewan--(BUSINESS WIRE)--November 22, 2017--Gensource Potash Corporation (“Gensource”o r t h e “Company”) (TSX.V: GSP) is
pleased to announce a proposed best efforts non-brokered private placement for gross proceeds of up to $1,500,000 (the “Offering”). The Offering will consist of the
sale of up to 23,076,924 Common Shares of the Company (“Common Shares”) at a price of $0.065 per Common Share. The Non-Brokered Financing is subject to an
over-allotment option, allowing Gensource to issue additional 3,461,538 Common Shares.
The Company intends to use the proceeds from the sale of the Common Shares for general working capital purposes as it moves forward to complete current
negotiations with market partners for the first of its scalable and environmentally responsible potash operations. 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 the Offering will be subject to a statutory fourth month and one day hold period from the Closing Date (as defined herein).
It is expected that the closing of the Offering will occur on or about November 29, 2017 (the “Closing Date”) and is subject to the satisfaction of certain conditions,
including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. In consideration for their services, certain persons (each, a
“Finder”) may receive from the Corporation on Closing, a cash commission equal to 8.0% of the gross proceeds of the Offering and compensation warrants to purchase
common shares equal to 8.0% of the total number of Common Shares sold, exercisable for 18 months from the Closing Date at $0.065 per common share (the “Broker
Warrants”).
Gensource’s President and CEO, Mike Ferguson commented, “We are excited at the level of interest and activity we have experienced from large and credible entities
in the agriculture sector across North America, South America and Asia. Completing the feasibility study for the Vanguard One Project and opening up Vanguard
Potash Corporation to immediate participation by strategic market partners are the key triggers to the current high level of interest in developing a project – exciting
prospects are developing for implementing our first project.”
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.
Caution Regarding Forward-Looking Statements
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 funding and development pursuant to the definitive joint
venture agreement with the EGME, 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, funding and development pursuant to a definitive joint venture agreement with the EGME, 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, could differ materially from those currently anticipated in such statements for many reasons such as:
failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; 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; 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.
CONTACT:
Gensource Potash Corporation
Mike Ferguson, 306-974-6414
President & CEO