REG - Gensource Potash - Financial Statements and Management's Discussion

Gensource PotashAnnouncement

30/08/2023 07:15

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RNS Number : 7829K  Gensource Potash Corporation  30 August 2023

 

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

 

Gensource Potash Releases Financial Statements and Management's Discussion and
Analysis for the Period Ending June 30, 2023

 

 

SASKATOON, Saskatchewan and London, U.K., August 30, 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 Financial Statements and Management's discussion and Analysis (MD&A) for the period ending June 30, 2023.

The detailed results of the Financial Statements and MD&A are available
under the Company's profile on SEDAR (www.sedarplus.ca
(http://www.sedarplus.ca) ) and on the Company's website
(https://gensourcepotash.ca/financials-
(https://gensourcepotash.ca/financials-and-presentations/) and-presentations/
(https://gensourcepotash.ca/financials-and-presentations/) ). The highlights
in this release should be read in conjunction with the 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

The Company is very pleased and fortunate to have Mr. Wayne Brownlee join the
Board of Directors as of May 3, 2023. Mr. Brownlee brings a wealth of global
potash experience from his 30 plus year career as a senior leader of Potash
Corp. The strength of Wayne Brownlee's financial and business skillset is
instrumental in advancing negotiations with multiple parties for significant
project equity financing investments. The negotiations have focused on
financial and joint business structures which enable all parties to benefit
from the modular and scalable production opportunity being developed by
Gensource.  The negotiations are at advanced stages which coincide with
Gensource's desire to implement development of its first selective solution
mining cavern on the Tugaske project this fall.

 

As part of the financing and business discussions, holders of the 5%
convertible debentures of the Company (issued on October 19, 2021) unanimously
agreed to extend the maturity date of the debentures from June 30, 2023 to
June 30, 2024. All terms to the debentures remain the same.

 

The Company is also pleased with its advancing relationship with the
Indigenous communities within Saskatchewan. Gensource had the opportunity to
provide a detailed "potash 101" seminar to Chief and Counsel of a prominent
First Nation and continues its success in creating close relationships with
other First Nations, as disclosed in news releases earlier this year.

 

Tugaske Project

The Company is finalizing plans for work that will optimize two areas of its
technology: underground cavern design and operation, and crystallization. Next
steps are to implement the planned optimizations and result confirmation.
Subject to financing, the Company plans to complete work on these
optimizations this fall and then integrate them into the Tugaske Project.
Expectations (to be confirmed) are for significant optimizations of capital
and operating costs.

 

Further, the Company has initiated preparation for initial resource
confirmation work on its new SMP200 permit area. Resource confirmation is
likely to include a detailed seismic survey. Shareholders will recall that
SMP200 adjoins the Tugaske mining area, extending northward from the Company's
lease KL-245. The lease area covers prospective resource already identified
through drilling and seismic work on KL-245 as described in the Indicated and
Measured Resource categories. A historical well is located within SMP200 that
correlates well with KL-245 well logs, a situation that augers well for good
geological data consistency.

 

·      On June 2, 2023, the Company granted an aggregate of 15,400,000
stock options, of which 14,900,000 were granted to directors and senior
officers of the Corporation, at an exercise price of $0.125 per share and are
exercisable for a period of 5 years.

 

·      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 May 8, 2023, Wayne Brownlee, an independent director, was
granted 1,000,000 stock options at an exercise price of $0.125, exercisable
for a period of 5 years.

·      On February 3, 2023, the Company issued 1,000,000 options to a
consultant at an exercise price of $0.14 for 5 years. 333,333 options vested
on February 3, 2023, 333,333 options vested on April 15, 2023, and 333,334
options vested on June 6, 2023.

·      The Company had cash of $303,035 as at June 30, 2023 compared to
$337,831 at December 31, 2022.

 

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.

 

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

 

For any press enquiries please contact Gensource at 306-974-6414.

 

Further information on Gensource Potash Corporation can be found at
www.gensourcepotash.ca (http://www.gensourcepotash.ca)

Follow us on twitter @GensourcePotash

 

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 the 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; 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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