Gensource Announces Strategy for Third Party Project Funding & Termination of Yancoal Off Take Agreement
Gensource Announces Strategy for Third Party Project Funding & Termination of Yancoal Off
Take Agreement
SASKATOON, Saskatchewan--(BUSINESS WIRE)--April 21, 2017--Gensource Potash Corporation (“Gensource”) (TSX.V:GSP) is pleased to announce
the strategy for the development of multiple potash production facilities, each of which is directed to a specific market.
As previously announced in a Gensource corporate update on March 31, 2017, the Vanguard One Project Feasibility Study (the “Study”) is over 75%
complete (as of today’s date, more than 85% complete) and remains on track to be finished in Q2 2017. With the completion of the Study, Gensource can
establish its general model for a production facility and, thereby, create the business template for developing new and additional potash production facilities
on the various other land holdings within Gensource’s Saskatchewan potash properties. The general business model is for each separate production facility to
attract market partners who will provide project financing as well as access to independent markets.
As a result of the memorandum of understanding with Essel Group ME Limited (“EGME”) announced on November 29, 2016, and the definitive shareholder
agreement with EGME announced on April 4, 2017, Gensource now has a partner who brings off take as well as financing to the Vanguard One project.
Hence, the Vanguard One Project facilitates the Study’s completion and will become the general model for all future Gensource production facilities.
On September 26, 2016, Gensource announced an off take agreement with Yancoal Canada Resources Co. Ltd. (“YCR Agreement”). A condition of the YCR
Agreement a was completion, by March 31, 2017, of the feasibility Study. Gensource, evaluating the EGME partnership in the Vanguard One project as the
better opportunity, made the strategic decision to focus on it and ensure the Study is completed in a robust manner such that the project is more fully prepared
to move ahead to the construction phase, rather than to try to meet a specific deadline of March 31, 2017 for Study completion. As a result of the feasibility
study not being complete at the March 31st deadline, the Yancoal Agreement has been terminated. Gensource maintains good relations with Yancoal and
looks forward to future opportunities to work with Yancoal.
As a reminder, Gensource is in the detailed development phase of the Vanguard One project – the feasibility study, expected to conclude in Q2 2017 will
determine the technical and economic viability of the project.
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province. 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.
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