Gensource Announces First Closing of up to $1,500,000 Private Placement
SASKATOON, Saskatchewan–(BUSINESS WIRE)–November 29, 2017–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.”
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.
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