Gensource Potash Corporation ("Gensource" or the
"Company") (TSX.V: GSP) a fertilizer development company
focused on a sustainable and modular approach to potash production,
is pleased to announce its intention to apply for the admission to
trading of the Company's common shares on the London Stock
Exchange’s AIM market (“AIM”). The Company is seeking admission to
AIM in order to enhance its access to UK and European institutional
investors. Gensource has received significant interest given its
business relationship with off-take partner Helm AG, lead debt
arrangers KfW IPEX-Bank and Societe Generale S.A. and its uniquely
ESG-friendly approach to potash production.
Mike Ferguson, President and CEO of Gensource Potash
commented:
"We see the potential admission to trading on AIM as a natural
step for Gensource to support its next phase of growth as we
transition to a sustainable potash producer with the Tugaske
Project in Saskatchewan, Canada. Gensource is a unique investment
proposition in the potash sector, located in a Tier One mining
jurisdiction, offering strong ESG credentials, a close relationship
with off-take partner Helm AG and a nimble pricing structure that
allows us to deal straight with the retailer. The London market is
known for its deep knowledge of the mining sector and as an
investment destination for institutional capital from around the
world and a dual listing would increase the Company's international
profile and facilitate improved access to UK and international
institutional investors.”
Potash production focussed on strong ESG standards
Gensource has an ESG-friendly approach to potash production
through its use of selective solution mining. Its projects will
have no brine ponds, eliminating the most environmentally damaging
aspect of traditional potash mines and will create no salt
tailings, which represent an intractable decommissioning issue for
traditional potash mines. The Gensource method also benefits from a
reduction in fresh water consumption compared to traditional potash
solution mines and its relative small size compared to traditional
projects, making the project size-appropriate for small-town rural
Saskatchewan – augmenting the local community without overwhelming
it. All in all, the Tugaske Project, we believe, represents a
transformational approach to potash production.
Gensource has a vision to help achieve food security by
supplying the world with a key macronutrient at an affordable cost
within an open, transparent, and sustainable environment.
With the small scale, modular and repeatable production
facilities, Gensource has the potential to deliver controlled
production growth in a manner that can align well with demand
growth.
Offtake Partner and Project Debt
Gensource officially announced Helm AG and its North American
subsidiary, Helm Fertilizer Corp. (together “Helm”), as the Tugaske
Project’s off-taker on 30 January 2020. Helm, founded in 1900, is a
privately-owned company based in Hamburg, Germany. Helm is a major
independent chemicals marketing enterprise and provides access to
the world’s key markets through its specific regional knowledge and
more than 100 subsidiaries, sales offices, and participations in
over 30 countries. The terms of the off-take for the Tugaske
Project will have Helm purchase 100% of the production from the
Project for 10 years, renewable thereafter.
In October 2019 (see Company announcement dated 18 October
2019), Gensource announced it formally mandated KfW IPEX-Bank GmbH
(“KfW”) to act as Lead Arranger for the senior debt component of
the Tugaske Project finance package. KfW IPEX-Bank is responsible
for international project finance within the larger KfW Group, and
is headquartered in Frankfurt, Germany. Further, in a news release
dated May 19, 2020, Gensource announced that the French
multinational bank, Societe Generale S.A., has also joined the
banking group for the Tugaske Project as joint lead arranger of the
debt facility.
Proposed admission to trading on AIM
In connection with the proposed admission to trading on AIM,
Gensource has appointed Strand Hanson Limited to act as the
Company's Nominated Adviser and Peel Hunt LLP as the Company’s lead
broker. It has also appointed Camarco to support the Company’s
international communications.
Additionally, a select group of UK legal advisers and a
reporting accountant are expected to be appointed in the near
term.
The Company’s common shares will continue to be listed and
traded on the TSX Venture Exchange.
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 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 listing of Gensource’s common shares
on AIM, 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 listing on AIM,
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;
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210506005463/en/
Gensource Potash Corporation: Mike Ferguson, President
& CEO Email: mike@gensource.ca
Camarco (UK Communications): Gordon Poole / Nick Hennis
Telephone: (0)20 3757 4997 Email: gensource@camarco.co.uk
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