SASKATOON, May 6, 2016 /CNW/ - Further to its news
releases dated April 21 and 23, 2016,
Gensource Potash Corporation ("Gensource" or the
"Company") (TSX.V: GSP) is pleased to announce that
it has completed tranche one of its previously announced
non-brokered private placement financing (the "Offering").
Tranche one of the Offering consisted of the sale of 24,910,285
units (the "Units") at $0.07 per Unit
for aggregate gross proceeds of $1,743,720.00. Tranche two of the Offering is
expected to close within the next 10 days.
Each Unit consisted of one (1) common share and one-half (1/2)
of one common share purchase warrant ("Warrant"). Each whole
Warrant shall entitle the holder to acquire an additional common
share at a price of $0.12 for a
period of twenty-four (24) months from the date of issuance.
The net proceeds from the sale of the Units will be applied to
acquisition cost of the mineral leases from Yancoal Canada
Resources Co. Ltd. ("YCR") as announced on April 6, 2016, to advance project work in
Gensource's Vanguard Project Area and for general working capital
purposes
The Company also paid a total of $55,458.20 in finders fees and has issued 792,260
broker warrants in connection with the Offering. Each Broker
Warrant will entitle the holder thereof to purchase one Unit at an
exercise price of $0.07 for a period
of 24 months following the closing date of the Offering.
All securities issued in conjunction with the Offering are
subject to a statutory four-month and one day hold period.
Mike Ferguson, President &
CEO of Gensource commented, "We are very pleased with the market
interest in this financing. Initially, we set out to raise
$1.5 M, but demand quickly grew
beyond that. With a second closing or tranche to the
financing planned for next week, we have far exceeded our original
goal. We are excited about the opportunities presented
with the Yancoal Canada Resources lease acquisition, and very
pleased with investor demand in connection with the
Offering.
About Gensource
Gensource is based in Saskatoon,
Saskatchewan and is focused on re-inventing the potash
industry by becoming a new, independent potash producer.
Gensource plans to accomplish this goal by creating a vertically
integrated business structure in partnership with a specific market
and developing the next potash production facility in Saskatchewan as a small operation that will
specifically serve the selected market. The new facility is
planned to use up-to-date selective dissolution technologies, which
would result in a small operation that leaves no salt tailings on
surface, uses no fresh surface water and creates a smaller carbon
footprint than current operations in the province. 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. The operations of
Gensource are in the development stage only and there is no actual
mineral production. Without a formal independent feasibility study,
there is no assurance that mineral production is feasible on an
economic basis.
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.
Caution Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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. 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, and Gensource's financial condition
and prospects, could differ materially from those currently
anticipated in such statements for many reasons such as: changes in
general economic conditions and conditions in the financial
markets; the ability to find distributors and source offtake
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.
SOURCE Gensource Potash Corp