Gensource Engages World-Class Potash Process Design and Fabrication Companies
Gensource Engages World-Class Potash Process Design and Fabrication Companies
SASKATOON, Saskatchewan--(BUSINESS WIRE)--July 20, 2020--Gensource Potash
Corporation (“Gensource” or the “Company”) (TSX-V: GSP), a fertilizer development
company focused on sustainable potash production, announces another milestone for its Tugaske
Project (“Project”) – the kick-off of engineering work for the major process equipment package.
Gensource has engaged a consortium of world-class potash process design and equipment
fabrication companies that will work together to provide a design-supply-commission package
for the entire process plant at the Tugaske Project.
As per previous news releases, Gensource has made significant advances in the development and
financing of the Tugaske Project. KfW IPEX-Bank and Société Générale, joint lead arrangers for
the project debt, are nearing completion of their due diligence process. The total senior debt
financing for the project is expected to be supported by export insurance coverage with the
German Export Credit Agency (“ECA”), Euler Hermes. To satisfy a significant portion of the
German export requirement, Gensource has elected to work with a consortium of three German-
based design and equipment fabrication companies: K-UTEC AG Salt Technologies (“K-Utec”),
Koeppern GmbH & Co KG (“Koeppern”), and Ebner GmbH & Co KG (“Ebner”). Individually,
these companies represent world-class capabilities in their specific areas of expertise, whether in
the design of potash and salt processing plants or the design and fabrication of equipment.
Together, the three companies, collectively referred to as “KKE”, have the capability to supply
the entire main process plant in a single design-supply-commission package. The main areas of
expertise pertinent to the Tugaske Project, are as follows:
K-UTEC AG Salt Technologies – Physical-chemistry, overall process development and
engineering including practical bench scale testing.
Koeppern GmbH & Co KG – Drying, compaction, and screening process design and
compaction equipment design and manufacture.
Ebner GmbH & Co KG – Cooling crystallisation process design and crystallization
equipment design and manufacture.
Based on the combined experience and capabilities of KKE, Gensource saw an opportunity to
not only work with these top-tier companies and have this work qualify for ECA coverage, but
also to simplify the number of project interfaces by packaging the entire process plant into a
single design-supply-commission contract package (“process plant package”). Together, these
companies provide a complete solution: from receiving the raw brine from the solution mining
wellfield all the way through to a final potash product, meeting the off-taker’s specifications,
ready for storage and shipping. Additionally, by packaging the entire process plant into one
export contract, Gensource de-risks the Project through obtaining a process guarantee from KKE
for product quality and process plant throughput.
To advance the scope on this process plant package, Gensource has initiated the first phase of
engineering with KKE, which will start the detailed process and equipment design, ultimately
leading to the fabrication and ordering of key equipment for the process plant. Advancing the
scope of this package supports a development timeline that targets production from the Tugaske
Project in late 2022, supplying product to Tugaske’s off-taker and future equity partner, Helm
Fertilizers.
The efforts of the KKE group will be integrated into the Project by Gensource’s key project
delivery partners: Engcomp Engineering & Computing Professionals Inc. (Engcomp), the lead
engineering and design consultant for the Project, and South East Construction L.P. (SEC), the
general construction contractor for the Project. Together, Gensource, Engcomp, and SEC are
acting as an integrated team, responsible for the overall execution and delivery of the Project.
Engcomp and SEC are seasoned engineering and construction professionals in the Saskatchewan
potash industry, and have been working with Gensource on the Tugaske Project since inception.
“Moving forward with KKE demonstrates Gensource’s commitment to the Tugaske Project and
re-affirms confidence in the successful outcome anticipated from the project financing process –
leading to full execution of the Tugaske Project in the fastest and most efficient manner
possible,” said Mike Ferguson, President & CEO of Gensource. “The three companies of the
KKE group have unrivalled global experience in the potash and salt industries and bring their
tremendous know-how, experience and proven track record of success to our Project. Together
with Gensource, Engcomp, and SEC, KKE rounds out the world-class potash team that we have
established, which will no doubt deliver a world-class sustainable potash production facility in
Saskatchewan via the Tugaske Project.”
For more information on K-Utec, Koeppern, Ebner, Engcomp, and SEC, please visit the
following websites:
https://www.k-utec.de/en/home;
https://www.koeppern-international.com/;
https://ebner-co.de/en/home-2/;
https://engcomp.ca/;
http://www.secon.ca/
About Gensource
Gensource Potash 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 small scale
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 small 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 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 the ability to
finance the Tugaske Project or other projects, 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 Gensource’s financial
condition and prospects, the ability to finance the Tugaske Project or other projects on terms
which are economic or at all, 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 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 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; 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 and CEO
Telephone: (306) 974-6414
Email: [email protected]