REG - Gensource Potash - Gensource Announces Increase in Potash Asset Base

Gensource PotashAnnouncement

21/12/2021 07:00

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RNS Number : 2714W  Gensource Potash Corporation  21 December 2021

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Gensource Announces Increase in Potash Asset Base

 
SASKATOON, Saskatchewan and London, U.K., December 21, 2021 - Gensource Potash
Corporation ("Gensource" or the "Company") (TSXV: GSP, AIM: GSP) is pleased to
announce the acquisition of an additional potash permit area, Block 59,
through the recent Government of Saskatchewan public offering of subsurface
Mineral Crown Dispositions S010.  Block 59 abuts existing Gensource leases,
is approximately 7,244 hectares and represents a direct addition to mineral
leases KL244 and KL245 in Gensource's Vanguard Area. Block 59 is located
immediately north of KL245 in the Rural Municipality of Huron No.223, which is
the location of Gensource's Tugaske potash project (the "Tugaske Project"),
the Company's first modular potash production project. The total price paid to
the Government of Saskatchewan for Block 59 was $103,305, or $14.26 per
hectare of Crown mineral rights and will be satisfied from existing cash
resources. Management believes that this is a cost-effective addition to
Gensource's potash asset base. Pursuant to Schedule Four of the AIM Rules for
Companies, it is noted that there are no profits attributable to Block 59.

 

Gensource's President and CEO Mike Ferguson comments "Gensource is leading the
way to what it believes is the future of the potash industry and this land
addition is an exciting opportunity to complete further geological and project
development work towards a potential new project.  We are already seeing new
players following Gensource's lead, but the combination of Gensource's
technical expertise to actually implement a project, innovative business
thinking, and first mover advantage means exciting things ahead for the
Company as we engage with new potential partners for future projects."

 

Further detail

 

Management believes that Saskatchewan contains the world's greatest resource
of potash-bearing ores, found in the Prairie Evaporite Formation.  This
resource is rich, widespread and consistent in its grades and thicknesses and
is very well understood, having been discovered in the 1940s.  Therefore, no
one needs to "explore" in order to "find" potash in Saskatchewan, as it is
available in abundance.  On this basis, Gensource has operated under a new
philosophy that land, or mineral rights, is not the most important aspect of a
potash operation.  Access to surface infrastructure (road, rail, power, gas,
water, etc.) necessary to construct and operate a potash production facility
is important.  Furthermore, the technology and the business plan to monetize
the resource in the most efficient manner are the key factors to becoming a
new potash producer.

 

Gensource is increasing the value proposition by developing an environmentally
sustainable and socially responsible mining operation that eliminates the most
negative impacts of traditional potash mining: salt tailings and brine ponds.
  While the Tugaske Project is Gensource's first planned potash production
module, the Company has identified additional project opportunities in other
market areas.  Gensource's overall business plan is to develop several
modular projects within its Vanguard Area, each directing product to clearly
defined market areas.

 

Due to Block 59 being  directly adjacent to KL245 and in close proximity to
the resource confirmation wells that Gensource has drilled over the past
several years, the data from those wells will be applicable to Block 59. This
optimizes and leverages Gensource's existing investments in geological and
geophysical exploration and analysis, making the process of defining a
resource on Block 59 more efficient from both a cost and time perspective.
Further, being a separate mining permit, Block 59 is expected to create a
future project area, separate from the Company's existing leases KL244 and
KL245, capable of supporting the implementation of even more potash production
modules under Gensource's business model.

 

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 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 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
development of additional potash production modules. 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 an offering of
securities; 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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