REG - Gensource Potash - Shareholder Update Call

Gensource PotashAnnouncement

26/08/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220826:nRSZ3468Xa&default-theme=true

RNS Number : 3468X  Gensource Potash Corporation  26 August 2022

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

 

Gensource Announces Date for Shareholder Update Call and Provides Global
Fertilizer Market Update

 

SASKATOON, Saskatchewan and London, U.K., August 26 2022 - Gensource Potash
Corporation ("Gensource" or the "Company") (TSXV: GSP, AIM: GSP) announces
today its plans to host a shareholder update call for Wednesday August 31,
2022 at 4:00 PM Eastern time, during which the Company will provide an update
on the development of its potash project near Tugaske, SK (the "Tugaske
Project"), discuss next steps, current fertilizer market industry dynamics and
respond to shareholder questions.  The call is scheduled for 4:00 pm Eastern
time.  Participants can join the call by dialing: 1-844-534-3191. If
shareholders would like any specific items addressed during the call, they
should email questions in advance to: info@gensource.ca

 

Gensource is actively pursuing the equity capital markets to complete the full
project financing package for the Tugaske Project (in conjunction with the
previously announced committed debt financing), which will allow the first
module at the Tugaske Project to commence construction.  However, turmoil in
the global financial markets, exacerbated by Russia's invasion of Ukraine,
have caused delays in completing the equity financing.  Recent comments by
Deputy Prime Minister Chrystia Freeland that Saskatchewan potash is "more
important then ever" and is now "geopolitically essential" is an example of
how vital potash supply is and how vital Gensource's Tugaske Project
production is to creating a new source of potash supply.  Equity investor
groups are now also beginning to see potash production in the same way.

 

"Although the first half of 2022 saw challenging capital markets, management
believes the supply and demand dynamics for fertilizer remain robust. Global
supplies have been curbed or disrupted sharply and, accordingly, management
believes that there is great demand for certainty-of-supply for fertilizer
products, particularly potash." said Mike Ferguson, CEO of Gensource Potash.
"Our modular technology, world-leading environmental profile, and ~80,000
acres of subsurface mineral rights available for mining in the Company's
Vanguard Area make Gensource a natural fit for investors looking to enter the
potash production space."

 

HELM AG and HELM Fertilizers (together, "HELM"), the Company's future equity
partner and the Tugaske Project's off-taker, remains focused on the Tugaske
Project with its $50M equity investment commitment (previously announced) and
is additionally providing short term support for the completion of the project
financing effort and the current bridge engineering work.   Financing and
construction of the first module at Tugaske remains the priority focus for the
Company and HELM, with initial planning for a second, previously announced,
module at the Tugaske Project expected to be incorporated as the Tugaske
Project develops.

 

Executive Vice President, Crop Nutrition Helm AG, Olivier Saulnier, commented,
"We are looking forward to participating in the Tugaske project not only to
capitalize on the marketing opportunities and enhance our current supply
chain for potash distribution, but also to be part of
the exceptional environmental profile of the project".

 

"The strength of the potash market and the current supply constraints provide
an opportunity to accelerate potential high-return strategic growth
opportunities in the potash world. We intend to capture this opportunity by
adding more modules with HELM at the Tugaske Project and other partners at
other projects", added Mike Ferguson of Gensource.

 

Agriculture And Potash Market Update

The following are some general insights into the agriculture sector.  While
Gensource is not an agricultural commodity producer, the potash and general
fertilizer markets are generally driven by agricultural commodities.

·    Global grain and oilseed stocks-to-use ratios remain well below
historical average levels, which we believe will continue to be supportive for
crop prices. Prices for key crops such as corn, soybeans and wheat are up 25
to 35 percent compared to the 10-year average, providing strong incentive for
growers to increase production.

·    The United States Department of Agriculture (USDA) projects that
Ukrainian wheat and corn production will be down by more than 40% and combined
Ukrainian exports of corn, wheat and barley will be down by approximately 60%
year-over-year in 2022/23.

·    United States crop conditions started the 2022 growing season
favorably, however, recent hot and dry weather has accelerated crop
development and could limit yield potential. In Western Canada, growing
conditions have improved from the severe 2021 drought.

·    Restricted supplies of potash from Russia and Belarus kept potash
prices at historically high levels through the first half of 2022. Potash
shipments from Russia and Belarus were estimated to be down approximately 25
and 50 percent respectively in the first half of 2022, with the majority of
Belarus exports occurring in the first quarter.

·    For potash, given the severe restrictions in place, it is expected
that the current global supply shortages will continue for the foreseeable
future as management believes the supply problems have now become structural
in nature.

 

 

 

For further information on Gensource, please contact:

 

 Gensource Potash Corporation
 Mike Ferguson - President & CEO                             +1-306-974-6414

 info@gensource.ca

 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

Follow us on twitter @GensourcePotash

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR") and is disclosed
in accordance with the Company's obligations under Article 17 of MAR.

 

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.

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCPFMATMTJTMTT