SASKATOON, Dec. 28, 2015 /CNW/ - Gensource Potash
Corporation ("Gensource" or the "Company")
(TSX.V: GSP) is pleased to announce that it has closed its
previously announced non-brokered private placement
financing. The Company raised gross proceeds of $530,099.50 through the sale of 7,572,850
Non-Flow-Through ("HD") units at $0.07 per share and $1,000,000 through the sale of 12,500,000 flow
through ("FT") units at $0.08
per share. The company paid a total of $19,607 in finders fees and has issued 280,100
broker warrants associated with the closing.
Each Unit consisted of one (1) common share and one-half (1/2)
common share purchase warrant ("Warrant"). Each whole Warrant will
entitle the holder to acquire an additional common share at a price
of $0.12 for a period of twenty-four
(24) months. 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. The net proceeds from the sale of HD units will
be used to advance engineering and begin environmental licensing
work for Gensource's first Lazlo area project and general working
capital purposes. Net proceeds from the sale of the FT units
will be put towards the planned drilling and seismic program in the
Lazlo area.
All securities issued in conjunction with the Offering are
subject to a four-month statutory hold period in Canada, and completion of the Offering is
subject to approval of the TSX Venture Exchange.
This financing is part of Gensource's previously announced plan
to continue development work at its Lazlo site. The
overall financing was planned at $800,000 in HD units plus up to $3M in FT units (as disclosed in Gensource's News
Release dated October 20, 2015.),
with the full proceeds to be collected in a number of
tranches. Including the initial tranche closed on
November 4th, 2015,
Gensource has now, with the current closing, over achieved the HD
target while making significant progress on the FT target.
Gensource's CEO, Mike Ferguson,
stated "…We are very pleased with the response of the market to our
project development plans, which are based on our business plan of
vertical integration and small scale operations. We continue
to find strong support from those who understand the potash
industry and understand our disruptive business model. We see
clearly that the industry should not be defined and controlled from
the production side but rather, from the market side.
With that as the driving fundamental, together with our selective
mining technologies, Gensource continues its plans to become a new,
independent, small scale producer in the potash industry."
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
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
