REG - Gensource Potash - Final Results

Gensource PotashAnnouncement

03/04/2023 07:15

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RNS Number : 0415V  Gensource Potash Corporation  03 April 2023

3 April 2023

 

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES

 

Gensource Potash Releases Audited Financial Statements and Management's
Discussion and Analysis for the year ended December 31, 2022

 

SASKATOON, Saskatchewan and London, U.K., April 3, 2023 - 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, 2022.

The detailed results of the Audited Financial Statements and MD&A are
available under the Company's profile on SEDAR (www.sedar.com
(http://www.sedar.com) ) and on the Company's website
(https://gensourcepotash.ca/financials-and-presentations/
(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 2022 and the year ending December 31, 2022

·    Global food security, energy costs and capital markets reached
unprecedented levels of disruption and volatility in 2022. The onset of war in
continental Europe placed considerable strain on global supply chains and
exports of key agricultural commodities, food stuffs and energy. Significantly
impacted areas include:Global grain stocks - Grain stock-to-use ratios
continued a six-year decline reaching the lowest level in more than 25 years.

·    Food prices - Agricultural commodities (food) prices trended well
above average levels, providing an incentive for farmers to increase planted
acreage and improve yields.

·    Fertilizer - Russia's war on Ukraine resulted in a fertilizer supply
shocks in nitrogen (driven by deteriorating natural gas supply in Europe) and
for potash (driven by inaccessible supply from Eastern Europe).  According to
industry sources, potash shipments from Eastern Europe declined by some 11
million tonnes due to sanctions on Belarus and banking restrictions on Russia.

 

As a result, International Incumbents and Private Equity Groups are exhibiting
heightened interest in the Company's direct supply model which utilizes
modular, scalable and low-environmental-impact potash production methods.

·    On December 30, 2022, the Company completed the flow-through portion
of the non-brokered private financing announced on December 1, 2022. The
Company issued 2,400,000 flow- through shares at a price of $0.20 per share
for aggregate gross proceeds of $480,000.

·    Subsequent to December 31, 2022, 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

·    The Company advanced their business relationship with Nekaneet First
Nation. The strategic relationship with Nekaneet First Nation was formalized
through its participation in Gensource's recently closed private placement
(see news release dated January 31, 2023). The relationship encompasses equity
ownership in Gensource and therefore a direct interest in the development of
the Gensource potash projects in Saskatchewan.

·    The Company had cash of $337,831 as at December 31, 2022 compared to
$209,536 at September 30, 2022 and $1,712,19 at December 31, 2021.

 

 

 

 

 

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 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.

 

 

 

 

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