SASKATOON, Saskatchewan--(BUSINESS WIRE)--
Further to its news releases dated September 19, 2016, Gensource Potash Corporation ("Gensource" or the "Company")(TSX.V: GSP) announces today it has completed the second and final tranche of the brokered private placement financing (the "Offering"). The combined aggregate gross proceeds of both tranches of the Offering was $3,233,650. The second tranche of the Offering consisted of the sale of 2,490,559 units of the Company (the "Units") at a price of $0.09 per Unit for aggregate gross proceeds of $224,150. Each Unit consisted of one common share in the capital stock of the Company and one common share purchase warrant ("Warrant"). Each Warrant is exercisable at a price of $0.15 per share beginning on the date that is 12 months following the closing date of the Offering (the "Closing Date") and expiring on the date that is 24 months following the Closing Date.
The Offering was completed by Industrial Alliance Securities Inc. (the "Agent"). A cash commission of $14,532 was paid to the Agent, including the issuance to the Agent (and members of the Agent’s selling group) of 161,467 agent’s units exercisable into Units at a price of $0.09 per agent’s unit for a period of 24 months following the Closing Date.
Mike Ferguson, President & CEO of Gensource said, “We are pleased to complete this private placement. The proceeds from both tranches will be used to complete the planned drilling and seismic work with a goal to upgrade the resource in the Vanguard area to the measured and indicated categories, which will support a feasibility study. As announced on October 12th, Gensource has begun work on the Vanguard feasibility study and the proceeds will be invested in that work as well."
“The success of the Offering indicates to us that our vision of utilizing new, efficient and clean mining and processing techniques to manufacture potash fertilizer while moving that product directly to the consuming market under a vertical integration arrangement is catching on and the benefits of such an arrangement are being understood. It’s an exciting path forward and, with the continued support of the financial markets, we will work to create a new model to provide an alternative source of supply to the farmers who need potash to increase their effectiveness in food production.”
The securities issued pursuant to the Offering are subject to a four month and one-day statutory hold period.
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province, using new and more efficient mining and processing methods and employing a new-to-the-potash-industry business model that connects the consumer of potash (agricultural producers) as directly as possible to the production of the product. Gensource’s President and CEO, Mike Ferguson, P.Eng., has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components: vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk, and technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.
Neither 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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 the expected timing for release of a resource estimate and a preliminary economic assessment, as well as a feasibility study, and the establishment of vertical integration partnerships and the sourcing of end use potash purchasers. 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 relating to, among other things, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, Gensource’s financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers, could differ materially from those currently anticipated in such statements for many reasons such as: the ability of Gensource to finance its projects; changes in general economic conditions and conditions in the financial markets; the ability to find distributors 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026006584/en/
