Gensource Completes First On-Site Activities – the Geotechnical Field Program for the Tugaske Project and Provides Update
Gensource Completes First On-Site Activities – the Geotechnical Field
Program for the Tugaske Project and Provides Update
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES
SASKATOON, Saskatchewan & LONDON--(BUSINESS WIRE)--May 26, 2022--Gensource
Potash Corporation (“Gensource” or the “Company”) (TSXV: GSP, AIM: GSP) is pleased to
announce the recent completion of a geotechnical field program for its potash project located
near Tugaske, Saskatchewan (the “Tugaske Project”). The Tugaske Project is the first modular,
vertically integrated, and environmentally sustainable potash production facility proposed to be
constructed on Gensource’s mineral leases in its Vanguard Area, and besides surveying work,
the geotechnical program represents the first field activities on the Project. The Tugaske Project
is intended to set a new environmental bar in the potash industry by using 75% less fresh water
per tonne of product compared to conventional solution mining methods and creating no salt
tailings and needing no brine or cooling ponds.
Highlights:
Geotechnical field program complete at Tugaske, successfully defining the subsurface
soil strata over the project
Results from the sampling program will inform the structural and civil designs for Project
construction
Completion of this fieldwork represents an important pre-development Project milestone
in this increasingly relevant potash project that will support the agriculture sector
As disclosed in a news release on September 2, 2021, Gensource has formed a special purpose
vehicle called KClean Potash Corporation (“KClean”) which is intended to finance, own,
construct and operate the Tugaske Project. KClean is currently wholly-owned by Gensource but
is anticipated to be partially owned by HELM AG and its North American subsidiary, HELM
Fertilizer Corp. (collectively, “HELM”) following final equity investments in KClean by
Gensource and HELM. KClean has engaged Clifton Engineering Group (“CEG”) as the
geotechnical consultant for the Tugaske Project. CEG and its subcontractor, Earth Drilling Ltd.,
have completed the field work component of the geotechnical investigation - collecting over 50
borehole samples totalling over 330 meters of drilling. Overall site management for the
geotechnical investigation was led by the Tugaske Project’s general construction partner, South
East Construction, and technical oversight was provided by the Tugaske Project’s engineering
consulting partner, Engcomp.
The purpose of the geotechnical work is to define the subsurface soil strata, including material
properties and existing conditions, for locations selected for construction of the plant site and
wellfield area. CEG will perform laboratory testing and analysis on the samples collected and
provide recommendations for several civil and structural related design elements of the Tugaske
Project, for example building and equipment foundations, access roads, site rail, buried pipelines,
etc.
“We are pleased with the safe and speedy completion of the field work component undertaken so
far for the Tugaske Project”, commented Mike Ferguson, President & CEO of Gensource. “This
is a key step in providing our technical team with the field information required to complete their
detailed civil and structural designs, which allow us to proceed with the necessary construction
licensing for the first elements of the Tugaske Project. The Tugaske Project is proceeding as
expeditiously as we can advance it.” In addition, Mike Ferguson said, “As disclosed in a news
release on September 23, 2021, the Company has already secured at $C 280 million Senior Debt
Facility from its two mandated joint lead debt arrangers, KfW IPEX-Bank and Société Générale
as well as a $C 50 million equity commitment from the Project’s off-taker, Helm. Over the past
months, Gensource has been extremely active in the equity financing of the Tugaske Project.
That effort is the highest priority of the Company and progress is being made, even in spite of the
extremely difficult current public market environment. Management believes that the Tugaske
Project represents one of the fastest paths to new potash production at an estimated two years to
first product while showing strong anticipated economic performance (see the Company’s
publicly available NI-43-101 Technical Report available on sedar.com).”
The integrated project delivery team comprising KClean, Engcomp, and South East
Construction, continue to progress with engineering, procurement, regulatory and permitting, and
construction readiness tasks, preparing the Tugaske Project for the ramp-up to full execution
once equity financing is complete. The work and services being performed in this current phase
is referred to as “Bridge Engineering”. Besides beginning site definition work for the plant site
area, another goal of the Bridge Engineering phase is to finalize, to the extent possible, the main
contracts for the Tugaske Project, those being: the contract to provide the full process plant
equipment package; the site energy system and the full electrical and instrumentation system,
and; the cavern drilling and development contract.
Further information on Gensource Potash Corporation can be found at www.gensourcepotash.ca
Follow us on twitter @GensourcePotashAbout Gensource
Gensource is a fertilizer development company based in Saskatoon, Saskatchewan and is on
track to become the next fertilizer production company in that province. With a modular and
environmentally leading approach to potash production, Gensource believes its technical and
business model will be the future of the industry. Gensource operates under a business plan that
has two key components: (1) vertical integration with the market to ensure that all production
capacity built is directed, and pre-sold, to a specific market, eliminating market-side risk; and (2)
technical innovation which will allow for a modular and economic potash production facility,
that demonstrates environmental leadership within the industry, producing no salt tailings,
therefore eliminating decommissioning risk, and requiring no surface brine ponds, thereby
removing the single largest and negative environmental aspect of potash mining.
Neither the 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 Statement
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 any offering of securities by Gensource. 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 could differ materially from
those currently anticipated in such statements for many reasons such as: failure to complete an
offering of securities; failure to finance the Tugaske Project or other projects on terms which are
economic or at all; failure to settle a definitive joint venture agreement with a party and advance
and finance the Tugaske Project; changes in general economic conditions and conditions in the
financial markets; the ability to find 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; an inability to predict and counteract the effects of
COVID-19 on the business of Gensource, including but not limited to the effects of COVID-19
on the price of commodities, capital market conditions, restriction on labour and international
travel and supply chains, failure to obtain required regulatory approvals; 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.
Contacts
Gensource Potash Corporation
Mike Ferguson – President & CEO
+1-306-974-6414
Strand Hanson Limited (Nominated & Financial Adviser)
+44 (0) 20 7409 3494
Ritchie Balmer / Rory Murphy / Charles Hammond
Peel Hunt LLP (Broker)
Ross Allister / David McKeown / Georgia Langoulant
+44 (0) 20 7418 8900
Camarco (Financial PR)
Gordon Poole / Charlotte Hollinshead / Lily Pettifar
+44 (0) 20 3757 4997
For any press enquiries please contact us on [email protected]