SASKATOON - Gensource Potash Corporation ('Gensource' or the 'Company') (TSXV: GSP, AIM: GSP) is pleased to provide its 2021 review and an outlook for 2022.
Highlights
Strong outlook for the potash industry - elevated pricing and demand driven by food security concerns, high crop prices and supply dislocation has driven retail potash prices in the US to over $890 per metric tonne
A new low cost, green supply of potash - utilizing innovative, sustainable production methods that are environmentally sound and socially responsible Gensource is aiming to have lowest quartile operating costs and high margins
Excellent project partners secured: CAD $50 million project equity commitment letter from project offtaker HELM AG, creating new direct supply chains in the potash industry
Commitment letters for $CAD 280 million from two mandated joint lead debt arrangers KfW IPEX-Bank and Societe Generale to provide a senior secured debt facility
Low initial capex - an additional approximate CAD $105 million is required to finance construction and the Company has been actively marketing the story to global institutional and strategic investors to secure the remaining capital
Active ramp up - pre-execution activities involving planning, scheduling, systems implementation and initial staffing efforts as well as design verification and equipment confirmation ongoing to be ready for full execution once project financing is complete
Land purchase - recent land purchase of Block 59 provides Gensource with a new package of minerals directly adjacent to Tugaske's mining area
Article content
Gensource's President and CEO Mike Ferguson comments, 'The road ahead for Gensource in 2022 is an exciting one. The Gensource team has long been working to the goal of putting its first module into construction and this is our year. As we transition from financing to construction, we will celebrate the milestones met, but there is much work ahead in the preparations for full project execution and management of the construction effort. We have a strong and focused team already working on the project and look forward to rolling up our sleeves to get this done.'
Update on the Tugaske Project
The development of the Tugaske Project continues as scheduled and planned. The Tugaske Project, located in southern Saskatchewan, represents the first of its kind; an ultra-low environmental impact potash production facility. Uniquely, the Project will produce no salt tailings and require no brine ponds on surface: a first for a potash mine. Tugaske will consume up to 75% less fresh water per tonne of final product compared to conventional solution mining methods. The lack of tailings and brine ponds not only vastly improves the environmental profile of the Project, but in this case, it creates an additional synergy in reducing capital and operating costs.
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 small scale 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 small 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.
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.
Contact:
Mike Ferguson
Tel: +1-306-974-6414
GENSOURCE POTASH CORPORATION 
