TIDMGSP
RNS Number : 9000M
Gensource Potash Corporation
26 May 2022
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES
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
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
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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