REG - Gensource Potash - Gensource Completes First On-Site Activities

Gensource PotashAnnouncement

26/05/2022 07:30

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RNS Number : 9000M  Gensource Potash Corporation  26 May 2022

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Gensource Completes First On-Site Activities - the Geotechnical Field Program
for the Tugaske Project and Provides Update

 

SASKATOON, Saskatchewan and London, U.K., May 26, 2022 - Gensource Potash
Corporation ("Gensource" or the "Company") (TSXV: GSP, AIM: GSP) is pleased to
announce the recent completion of a geotechnical field program for its potash
project located near Tugaske, Saskatchewan (the "Tugaske Project").  The
Tugaske Project is the first modular, vertically integrated, and
environmentally sustainable potash production facility proposed to be
constructed on Gensource's mineral leases in its Vanguard Area, and besides
surveying work, the geotechnical program represents the first field activities
on the Project.  The Tugaske Project is intended to set a new environmental
bar in the potash industry by using 75% less fresh water per tonne of product
compared to conventional solution mining methods and creating no salt tailings
and needing no brine or cooling ponds.

 

Highlights:

·    Geotechnical field program complete at Tugaske, successfully defining
the subsurface soil strata over the project

·    Results from the sampling program will inform the structural and
civil designs for Project construction

·    Completion of this fieldwork represents an important pre-development
Project milestone in this increasingly relevant potash project that will
support the agriculture sector

 

http://www.rns-pdf.londonstockexchange.com/rns/9000M_1-2022-5-26.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9000M_1-2022-5-26.pdf)

 

As disclosed in a news release on September 2, 2021, Gensource has formed a
special purpose vehicle called KClean Potash Corporation ("KClean") which is
intended to finance, own, construct and operate the Tugaske Project.  KClean
is currently wholly-owned by Gensource but is anticipated to be partially
owned by HELM AG and its North American subsidiary, HELM Fertilizer Corp.
(collectively, "HELM") following final equity investments in KClean by
Gensource and HELM. KClean has engaged Clifton Engineering Group ("CEG") as
the geotechnical consultant for the Tugaske Project. CEG and its
subcontractor, Earth Drilling Ltd., have completed the field work component of
the geotechnical investigation - collecting over 50 borehole samples totalling
over 330 meters of drilling. Overall site management for the geotechnical
investigation was led by the Tugaske Project's general construction partner,
South East Construction, and technical oversight was provided by the Tugaske
Project's engineering consulting partner, Engcomp.

 

The purpose of the geotechnical work is to define the subsurface soil strata,
including material properties and existing conditions, for locations selected
for construction of the plant site and wellfield area.  CEG will perform
laboratory testing and analysis on the samples collected and provide
recommendations for several civil and structural related design elements of
the Tugaske Project, for example building and equipment foundations, access
roads, site rail, buried pipelines, etc.

 

"We are pleased with the safe and speedy completion of the field work
component undertaken so far for the Tugaske Project", commented Mike Ferguson,
President & CEO of Gensource. "This is a key step in providing our
technical team with the field information required to complete their detailed
civil and structural designs, which allow us to proceed with the necessary
construction licensing for the first elements of the Tugaske Project.  The
Tugaske Project is proceeding as expeditiously as we can advance it."  In
addition, Mike Ferguson said, "As disclosed in a news release on September 23,
2021, the Company has already secured at $C 280 million Senior Debt Facility
from its two mandated joint lead debt arrangers, KfW IPEX-Bank and Société
Générale as well as a $C 50 million equity commitment from the Project's
off-taker, Helm.  Over the past months, Gensource has been extremely active
in the equity financing of the Tugaske Project.  That effort is the highest
priority of the Company and progress is being made, even in spite of the
extremely difficult current public market environment.  Management believes
that the Tugaske Project represents one of the fastest paths to new potash
production at an estimated two years to first product while showing strong
anticipated economic performance (see the Company's publicly available
NI-43-101 Technical Report available on sedar.com)."

 

The integrated project delivery team comprising KClean, Engcomp, and South
East Construction, continue to progress with engineering, procurement,
regulatory and permitting, and construction readiness tasks, preparing the
Tugaske Project for the ramp-up to full execution once equity financing is
complete.  The work and services being performed in this current phase is
referred to as "Bridge Engineering".  Besides beginning site definition work
for the plant site area, another goal of the Bridge Engineering phase is to
finalize, to the extent possible, the main contracts for the Tugaske Project,
those being: the contract to provide the full process plant equipment package;
the site energy system and the full electrical and instrumentation system,
and; the cavern drilling and development contract.

 

 

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 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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