REG - Gensource Potash - $6,000,000 Non-Brokered Private Placement

Gensource PotashAnnouncement

01/12/2022 07:00

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RNS Number : 1745I  Gensource Potash Corporation  01 December 2022

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Gensource Announces $6,000,000 Non-Brokered Private Placement

 

SASKATOON, Saskatchewan and London, U.K.  - December 1, 2022 - Gensource
Potash Corporation ("Gensource" or the "Company") (AIM/TSXV: GSP), a
fertilizer development company focused on sustainable potash production, is
pleased to announce a proposed best efforts, non-brokered private placement
for gross proceeds of up to $6,000,000.00 (the "Offering").

 

The Offering will consist of: (i) up to 20,000,000 units of the Company
("Unit") at a price of $0.15 per Unit for gross proceeds of up to $3,000,000;
and (ii) up to 15,000,000 common shares of the Company that are "flow-through
shares" as defined in subsection 66(15) of the Income Tax Act (Canada) (each a
"Flow Through Share") at a price of $0.20 per Flow Through Share for gross
proceeds of up to $3,000,000.

 

Each Unit shall consist 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 intends to use the net proceeds from the sale of the Units to
advance the Tugaske Project, specifically to continue with detailed
engineering and procurement activities, complete well pad leasing and drilling
planning and to obtain pipeline rights of way, to complete the financing
process of the project, and for general working capital purposes.  Use of
proceeds from the sale of Flow Through Shares will be used to further expand
resource definition on KL244 and KL245 and to initiate resource definition
work on SMP200, all with an aim of developing a second project within the
Vanguard Area.

 

The Offering will take place by way of a private placement to qualified
investors in such provinces of Canada as the Company may designate, and
otherwise in those jurisdictions where the Offering can lawfully be made. The
securities to be issued pursuant to the Offering will be subject to a
statutory four month and one day hold period from the date of issuance.

 

The offering is subject to the satisfaction of certain conditions, including
receipt of all applicable regulatory approvals, including that of the TSX
Venture Exchange.

 

A further update on the Offering will be made as and when appropriate.

 

For further information on Gensource Potash, please contact:

 

 Gensource Potash Corporation
 Mike Ferguson - President & CEO                             +1-306-974-6414

 Strand Hanson Limited (Nominated & Financial Adviser)       +44 (0) 20 7409 3494
 Ritchie Balmer / Rory Murphy / Charles Hammond

 Peel Hunt LLP (Broker)                                      +44 (0) 20 7418 8900
 Ross Allister / David McKeown / Georgia Langoulant

 Camarco (Financial PR)                                      +44 (0) 20 3757 4997

 Gordon Poole / Charlotte Hollinshead / Lily Pettifar

 

For any press enquiries please contact us on gensource@camarco.co.uk

 

Further information on Gensource Potash Corporation can be found at
www.gensourcepotash.ca (http://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 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 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 complete the Offering; 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.

 

 

 

 

 

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