Gensource Potash Releases Audited Financial Statements and Management’s Discussion and Analysis for the Year Ended
Gensource Potash Releases Audited Financial
Statements and Management’s Discussion
and Analysis for the Year Ended December
31, 2023
2023 Final Results and Board Change
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES
SASKATOON, Saskatchewan & LONDON--(BUSINESS WIRE)--April 30, 2024--Gensource
Potash Corporation (“Gensource” or the “Company”) (AIM/TSXV: GSP), a fertilizer
development company focused on sustainable potash production, announces that it has released
its Audited Financial Statements and Management’s discussion and Analysis (MD&A) for the
year ended December 31, 2023.
The detailed results of the Audited Financial Statements and MD&A are available under the
Company’s SEDAR+ profile on www.sedar.plus.ca or at https://gensourcepotash.ca/financials-
and-presentations/). The highlights in this release should be read in conjunction with the Audited
Financial Statements and MD&A. The MD&A provides an analysis of comparisons with
previous periods, trends affecting the business and risk factors.
Summary of Key Activities During Q4 2023 and the year ending December 31
In today's interconnected world, fostering social and environmental consciousness is not just a
choice but an imperative. Gensource's commitment to social and community values reflects our
purpose and role in supplying a hungry world with potash, a sustainably produced macronutrient
(critical mineral) essential for society's transition towards a more food-secure future. What sets
us apart is our commitment to environmental stewardship, evident in our utilization of leading
approaches to potash extraction, such as scalable potash production systems and other practices
to minimize our ecological footprint.
The completion of the financing for the Tugaske Project, our primary focus, is progressing
towards the close of the first step to a multi-stage funding that will provide total construction
finance (see news release dated December 7, 2023). Tugaske, our first project of potentially
many similar projects, has been thoroughly vetted by independent third parties through the senior
debt due diligence process. The project is fully permitted and ready for construction.
Gensource prioritizes community engagement and empowerment, working closely with local
stakeholders to ensure that its operations benefit the communities in which it operates. Being a
partner in sustainable resource development means participating in making business decisions
that create wealth for a growing Indigenous community and a growing province. Our community
partnership is a testament to our commitment to sustainable resource development and our
dedication to making business decisions that benefit our shareholders, the Indigenous
community, and the province.
In 2023, Nekaneet First Nation joined Gensource as an investor to implement a Saskatchewan
project that will bring multi-generational benefits to our shareholders and the local community.
The Company's Tugaske potash project rests on Treaty 4, encompassing the lands of the Cree,
Saulteaux, Dakota, Nakota and Lakota, and homeland to the Metis Nation and the lands included
in the traditional territory of Nekaneet First Nation. We are all part of this Treaty and must take
our corporate responsibility seriously to create real change through meaningful engagement.
A significant move in our corporate senior management strategy was to welcome Wayne
Brownlee to our team as an independent director (Chair of the audit committee). Wayne will
significantly enhance our collective knowledge and experience in the finance and fertilizers
industry, not only for moving Tugaske into construction but also for implementing future
projects. With over three decades of successful senior leadership, communication, and market
planning expertise, Mr. Brownlee will be instrumental in boosting Gensource's market strategy.
With the addition of Mr. Brownlee as an independent director and Chair of the audit committee,
non-independent director Alton Anderson, CFO, will not seek re-election to the board at this
year’s annual meeting and will step down effective April 30, 2024 from the board. The result is
improved corporate governance with only one non-independent director remaining on the board
(Mike Ferguson, CEO). The Company thanks Mr. Anderson for his time serving as a non-
independent director during the transition to an independent director. Mr. Anderson will continue
in his role as CFO of the Company.
According to the International Fertilizer Association (IFA), consumption of fertilizers worldwide
was expected to recover by 4% in 2023 to 192.5 million metric tons (mmt), but supply and
demand to some degree has been impacted by risk from war, and supply chain interruption in
delivery.
Gensource focuses on delivering long-term value to our shareholders, customers, employees, and
other stakeholders. Throughout the year, we made significant strides in advancing our strategic
initiatives. Looking ahead, we remain optimistic about Gensource's prospects. While
uncertainties persist in the global economic landscape, our resilient business model, with
Management and Board’s commitment of time, expertise and financing, the Company will
continue to support the innovations that will enable it to navigate challenges and capitalize on
opportunities.
We are optimistic about the initiatives planned for the upcoming year, such as new market
expansion strategies and investments in technology and infrastructure. We are proud of our
accomplishments and confident in our ability to sustain growth and profitability in the years to
come.
The following is a recap of significant events in 2023:
On January 27, 2023, the Company closed the second and final closing of the non-
brokered private placement. The Company issued 11,969,998 Units for aggregate gross
proceeds of $1,795,499.70. Each Unit consists of one common share in the capital stock
of the Company (a “Common Share”) and one Common Share purchase warrant of the
Company (a “Warrant”). Each whole Warrant is exercisable for one Common Share (a
“Warrant Share”) at an exercise price of $0.30 per Warrant Share for a period of 24
months following the date of issuance.
On May 29, 2023, the Company completed a non-brokered private placement offering of
Units at a price of $0.15 per unit. At the closing, the Company issued 6,118,583 units for
aggregate gross proceeds of $917,787.45. Each Unit consists of one common share in the
capital stock of the Company (a “Common Share”) and one Common Share purchase
warrant of the Company (a “Warrant”). Each whole Warrant is exercisable for one
Common Share (a “Warrant Share”) at an exercise price of $0.30 per Warrant Share for a
period of 24 months following the date of issuance.
On October 2, 2023, the Company completed a non-brokered private placement offering
of Units at a price of $0.15 per unit. At the closing the Company issued 4,763,588 units
for aggregate gross proceeds of $729,538. Each Unit consists of one common share in the
capital stock of the Company (a “Common Share”) and one Common Share purchase
warrant of the Company (a “Warrant”). Each Warrant will be exercisable for one
Common Share (a “Warrant Share”) at an exercise price of $0.30 per Warrant Share for a
period of 24 months following the date of issuance.
The Company had cash of $409,488 as at December 31, 2023 compared to $973,520 at
September 30, 2023 and $337,831 at December 31, 2022.
Further information on Gensource Potash Corporation can be found at www.gensourcepotash.ca
Follow us on twitter @GensourcePotash
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 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 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
For further information on Gensource Potash:
Gensource Potash Corporation
Mike Ferguson – President & CEO
+1-306-974-6414
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / Rory Murphy / Charles Hammond
+44 (0) 20 7409 3494
Peel Hunt LLP (Broker)
Ross Allister / David McKeown / Georgia Langoulant
+44 (0) 20 7418 8900
For any press enquiries please contact Gensource at 306-974-6414.