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REG - Gensource Potash - Closing of Non-Brokered Private Placement and TVR

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RNS Number : 3984L  Gensource Potash Corporation  03 January 2023

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Gensource Potash Announces First Closing of Non-Brokered Private Placement and
TVR

 
SASKATOON, Saskatchewan and London, U.K.  - January 3, 2023 - Gensource
Potash Corporation ("Gensource" or the "Company") (AIM/TSXV: GSP), a
fertilizer development company focused on sustainable potash production, today
announced that on December 30, 2022, it completed the first closing of its
previously announced non-brokered private placement offering (the "Offering")
of (i) units of the Company (each a "Unit") at a price of $0.15 per Unit; and
(ii) 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.

At the first closing, the Company issued 2,400,000 Flow Through Shares for
aggregate gross proceeds of $480,000.00.

The TSX Venture Exchange has granted the Company a 30 day extension to the
Offering. It is the intention of the Company to keep the offering of Units
open to investors into January, 2023 and, accordingly, the Company intends to
hold a closing of the Unit portion of the Offering. The Company will not hold
any further closings of the Flow Through Share portion of the Offering.

Each Unit will 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 whole 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.

Use of proceeds from the sale of Flow Through Shares will be used to further
expand resource definition on the Company's KL244 and KL245 leases and to
initiate resource definition work on its SMP200 permit, all with an aim of
developing a second project within the Vanguard Area.

The Company intends to use the net proceeds from the sale of any Units to
advance the Tugaske Project (the first project within the Vanguard Area),
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.

The securities issued pursuant to this closing of the Offering are subject to
a hold period of four months plus a day expiring May 1, 2023.

 

This closing of the Offering remains subject to receipt of the final approval
of the TSX Venture Exchange.

 

Admission to Trading on AIM

 

An application will be made for the admission (the "Admission") of the
2,400,000 new Common Shares issued pursuant to the Flow Through Share
component of the Offering, which will rank pari passu with existing Common
Shares, to trading on the AIM Market of the London Stock Exchange plc ("AIM").
It is expected that the Admission will become effective, and trading will
commence at 8.00 am on January 5, 2023.

 

Following Admission, the Company's total issued share capital will consist of
426,795,995 Common Shares of no par value. For the purposes of the UK's
Financial Conduct Authority's Disclosure Guidance and Transparency Rules, the
total number of voting rights in the Company will be 426,795,995. This figure
may be used by shareholders as the denominator for the calculations by which
they determine if they are required to notify their interest in, or a change
of their interest in, the Company under the UK's Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

 

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 receive final approval of the TSXV for 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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