Gensource Potash Announces Confirmation of Intention to List Its Shares on London Stock Exchange’s AIM Market THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR SUBSCRIPTION IN ANY JURISDICTION.
Gensource Potash Announces Confirmation of Intention to List Its Shares on
London Stock Exchange’s AIM Market
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES
FOR SALE OR SUBSCRIPTION IN ANY JURISDICTION.
SASKATOON, Saskatchewan--(BUSINESS WIRE)--October 25, 2021--Gensource Potash
Corporation (“Gensource” or the “Company”) (TSXV: GSP), a fertilizer development company
focused on sustainable potash production, today is pleased to announce its intention to seek
admission of its common shares (the “Common Shares”) to trading on the London Stock
Exchange’s AIM market ("AIM"), subject to finalization of the requisite documentation (the
"Admission"). The Company expects that Admission will become effective early November.
This will result in the Common Shares being “dual listed” on the AIM and the TSX Venture
Exchange (the “TSXV”).
The Company is seeking the Admission, in addition to its current listing on the TSXV, to take
advantage of exposure to the United Kingdom and European financial markets and the increased
liquidity expected with an additional listing on AIM. With Gensource’s relationship with the off-
taker for the Tugaske potash project of the Company (the “Tugaske Project”), HELM AG
(“HELM”), headquartered in Germany and its two mandated lead debt arrangers, KfW IPEX-
Bank and Société Générale (see Gensource news release dated September 23, 2021 for the latest
information on debt financing for the Tugaske Project), also both headquartered in Europe, the
Tugaske Project has generated interest from UK and European investors. Additionally, the
Company’s business plan of building future potash production modules around the world lends
itself to obtaining increased liquidity through the global reach of an AIM listing.
Michael Ferguson, CEO of Gensource, commented: “We are delighted to announce our
intention to list Gensource on the London Stock Exchange’s AIM market, facilitating the
opportunity for stakeholders and interested parties to invest in a high margin, de-risked, long life
and sustainable project that sets a new direction in a staid industry.
“Our vertical integration model will enable all production capacity to be directed and pre-sold to
a specific market which will assist us in reducing market-side risk. For our Tugaske Project, we
plan to deploy this model through our offtake agreement with HELM. Technical innovation is
another key component of our business model and allows for a modular and economic potash
production facility that we anticipate will demonstrate superior efficiency and environmental
leadership within the potash industry. By using selective solution mining techniques, salt tailings
will be entirely avoided, negating the largest decommissioning risk for any potash project.
Because there are no salt tailings, the corresponding brine ponds are also eliminated, allowing
the Tugaske Project to avoid the single largest negative environmental impact of potash mining.
“We very much look forward to this exciting new phase, which we believe will provide us with
greater visibility and opportunity for growth as we build our market share.”
Tugaske Project
The Tugaske Project will be the first potash project of its kind; utilizing innovative, sustainable
production methods that are environmentally sound and socially responsible. The Tugaske
Project will have a decreased physical footprint relative to conventional potash mining, resulting
in less impact on air, water and land. Gensource’s vertical integration with the potash market
also sets it apart and helps ensure that all production capacity is pre-sold, which supports a
significantly de-risked business model, greatly reducing market-side risk.
Tugaske Project is “shovel ready”
The Company has already achieved key milestones at its Tugaske Project in Saskatchewan, a tier
1 mining jurisdiction. Key permits are in place (namely the determination of “not a
development” by the Saskatchewan Ministry of Environment and the approval of a development
permit by the local government at the location of the Tugaske Project, the RM of Huron No.
223), meaning the Company’s development partners are ready to commence construction
permitting (subject to the completion of debt financing discussed below, and other conditions)
and initiation of construction activities. The Tugaske Project’s Proven and Probable Mineral
Reserve of over 14.1 million tonnes (reference the Company’s NI 43-101 Technical Report dated
October 14, 2021, available on sedar.com or on the Company’s website) indicates a minimum
expected mine life of more than 56 years, based on annual production of 250,000 tonnes of
saleable muriate of potash.
Debt financing secured for the Tugaske Project
As disclosed on September 23, 2021, the Company received binding commitment letters subject
to certain conditions from KfW IPEX-Bank and Société Générale (the “Mandated Lead
Arrangers”), for a debt facility of up to $280 million to finance the debt component of the
Tugaske Project. The commitment from the Mandated Lead Arrangers highlights a strong
endorsement for the Tugaske Project and signifies an appetite for the Company’s sustainable
business model. Notably, KfW has substantial experience financing fertilizer development
projects globally.
Tugaske Project activities have begun
Initial Tugaske Project activities, including project team formation and ramp up, additional
procurement work for key supply contracts, confirmation of capital and operating cost estimates,
confirmation of overall project schedule, etc., have already kicked off with the Company’s
engineering and construction partners in Saskatoon. These initial project start-up activities are
financed by an unsecured debt facility provided to KClean Potash Corporation (the joint venture
corporation that is planned as the vehicle that will construct and own the Tugaske Project) by
HELM AG. The provision of this initial funding is a strong show of support for the Tugaske
Project by its off-taker and future equity partner (see Gensource news release dated September 2,
2021 for background on KClean Potash Corporation). The initial project activities currently
underway are expected to take 4-5 months to complete.
About 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 small and economic potash production facility, that
demonstrates environmental leadership within the industry by using significantly less water per
tonne compared to conventional solution mining operations, producing no salt tailings, therefore
eliminating decommissioning risk, and requiring no surface brine ponds, thereby removing the
single largest negative environmental impact 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 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 AIM listing, the proposed financing of the Tugaske Project and
the development of the Tugaske Project and other projects 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 relating to the success of the
Tugaske Project and the financing of the Tugaske Project 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 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