Gensource Announces First Closing of up to $1,500,000 Private Placement
Further to its news release dated November 22, 2017, Gensource Potash Corporation ("Gensource" or the "Company") (TSX.V: GSP) announces today it has completed tranche one of the up to $1.5 million private placement financing (the "Offering"). The Offering will consist of the sale of up to 23,076,924 Common Shares of the Company (” Common Shares””) at a price of $0.065 per Common Share. The Non-Brokered Financing is subject to an over-allotment option, allowing Gensource to issue additional 3,461,538 Common Shares.
Tranche one of the Offering consisted of the sale of 10,360,768 common shares of the Company (the "Common Shares") at a price of $0.065 per Common Share, for gross proceeds of $673,450.00. Tranche two of the Offering is expected to close on or before December 15th, 2017.
Additionally, the Company paid commissions on the Offering to certain finders. The commissions paid to the finders consisted of a cash payments of $34,580.00 and the issuance to the finders of 532,000 agent’s warrants exercisable into Common Shares at $0.065 per agent’s warrant for a period of 18 months following the Closing Date.
The Company intends to use the proceeds from the Offering for general working capital purposes as it moves forward to complete current negotiations with market partners for the first of its scalable and environmentally responsible potash operations, as well as to continue with resource definition work to support a second project within the Vanguard area.
The securities issued pursuant to the Offering are subject to a four month and one day statutory hold period.
Mike Ferguson, President & CEO of Gensource, commented: "We are pleased to have closed the first tranche of the private placement and are moving to the second close on or about December 15th, 2017. Gensource continues to drive towards the business structure with our market partners that facilitate moving the first of our scalable and environmentally friendly projects to production."
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 that sets a new environmental standard in the industry, 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 funding and development pursuant to the definitive joint venture agreement with the EGME, the ability to successfully implement the feasibility study for mineral production on a technical and economic basis, 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, funding and development pursuant to a definitive joint venture agreement with the EGME, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, the ability to successfully implement the feasibility study for mineral production on a technical and economic basis, 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: failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; an inability to successfully implement the feasibility study for mineral production on a technical and economic basis; 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.
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