Gensource Obtains Development Permit for Its Tugaske Potash Project
Gensource Obtains Development Permit for
Its Tugaske Potash Project
SASKATOON, Saskatchewan--(BUSINESS WIRE)--August 31, 2020--Gensource Potash
Corporation (“Gensource” or the “Company”) (TSX-V: GSP), a fertilizer development
company focused on sustainable potash production, announces the successful completion of the
next major milestone for its Tugaske Project (“Project”). Gensource has now received approval
of its Development Permit Application for a potash mine from the Rural Municipality (“RM”) of
Huron No. 223, whose offices are in the Village of Tugaske, SK.
Gensource has worked closely with the RM over the past several years, spanning the initial
exploration work on its potash lease covering the area, to the tangible development work on the
project, a site being chosen and surface land being optioned – all making the project ready for
construction. Earlier this summer, Gensource completed an application for a Development
Permit and submitted it to the RM for consideration. We are excited to report that the permit was
approved by RM Council at its August meeting under existing RM Bylaws, opening the way to
construct our first potash module within the boundaries of the municipality.
Corey Doerksen, Reeve of the RM of Huron, commented, “Here at the RM of Huron, we are
extremely excited at the issuing of an RM Development Permit to Gensource Potash for the
Tugaske Project. Ever since our first contact with Paul [Gensource’s Project Manager], we have
been very impressed with their operation and handling of the upcoming project. We are
particularly excited about the fact that there will be some community and surrounding area
involvement during the construction and operational phases. We look forward to many years of
cooperation with Gensource in the area.”
The overall timeline leading to construction is now in the hands of Gensource’s senior lenders
(KfW and Société Générale – see Gensource news releases dated May 19, 2020 and October 18,
2019) and the process to have project financing coverage approved through the Euler Hermes
process. As indicated in previous news releases, the senior debt financing is aided by the export
insurance coverage provided by the German Export Credit Agency (“ECA”), Euler Hermes. The
senior lenders’ due diligence investigations are now essentially complete as planned and
discussions are underway on final terms of the debt package. The final step now is to obtain ECA
approval. Current plans are to have the project submitted to the November 5, 2020 meeting of the
Euler Hermes’ governing committee and receive approval thereafter. The Euler Hermes approval
represents the milestone for senior debt letters of commitment, which will then trigger equity
investment in the project. As this process completes, Gensource will continue with the planned
project development efforts to ensure that overall timelines are maintained.
Further to the procurement requirements, as driven by the Euler Hermes process, Gensource is
pleased to announce that it has engaged MAVEG Industrieausrüstungen GmbH (“Maveg”) to act
as a general procurement agent for the Company with respect to a significant package of
equipment and services. Maveg has great experience in the procurement of industrial equipment
and services for the mining and industrial processing industries globally, and Gensource looks
forward to working with Maveg to create cost-efficient and timely procurement packages that
will fall under the Euler Hermes coverage.
Gensource’s President & CEO, Mike Ferguson, commented “We have worked tirelessly to get to
this stage and receiving a Development Permit for a potash mine from the RM is one of our most
significant permitting-related milestone to date. This Development Permit, coupled with the
Saskatchewan Environment determination already received (see news released dated August 9,
2018), means the project is truly shovel ready. Gensource takes pride in maintaining close
contact and good communications with all stakeholders – and the linear and efficient manner in
which the Development Permit was approved shows that cooperation and working towards a
positive common goal represents the best way to get things done.”
About MAVEG
MAVEG Industrieausrüstungen GmbH was founded in 1977 and has its headquarters in
Ratingen near Düsseldorf as well as several branches and subsidiaries in other countries. The
MAVEG team of experts has extensive practical experience with complex process projects and
has adapted its structure specifically to provide its customers with innovative and reliable
solutions. For the ambitious landmark Project Tugaske of Gensource Potash Corporation
MAVEG will provide the client with a complete structuring of the procurement by focussing on
maintaining the rules for an optimized ECA financing.
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 negative environmental impact of conventional 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.
The technical information presented in this news release has been reviewed and approved by Mr.
Mike Ferguson, P.Eng., of Gensource Potash Corporation, who is a Qualified Person according
to NI 43-101.
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]