SASKATOON, April 21, 2016 /CNW/ - Gensource Potash
Corporation ("Gensource" or the "Company")
(TSX.V: GSP) is pleased to announce a non-brokered private
placement of up to 21,478,572 Units at $0.07 per Unit for gross proceeds of
approximately $1.5 million.
The proceeds of the financing will be applied to acquire mineral
leases from Yancoal Canada Resources Co. Ltd. ("YCR") as
announced on April 6, 2016, and for
general working capital.
Each whole Unit will consist 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 after closing.
The Offering is subject to regulatory approval, and all
securities issued in conjunction with the Offering will be subject
to a four-month statutory hold period. The Company may pay finder's
fees in accordance with the rules of the TSX Venture Exchange.
About Gensource
Gensource is based in Saskatoon,
Saskatchewan and is focused on developing the next potash
production facility there. 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,
the output of which can then be directed to that 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
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 completion of the YCR transaction, the
expected timing for release of a resource estimate and a
preliminary economic assessment, as well as a feasibility study,
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,
completion of the YCR transaction, a refund of lease conversion
costs in the event that the YCR transaction does not proceed,
results of exploration, the economics of processing methods,
project development, reclamation and capital costs of Gensource's
mineral properties, 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: an inability to complete the YCR transaction
on the terms as announced or at all, including the conditions for
regulatory approval and financing; denial by ministerial
authorities of a refund of lease conversion costs in the event that
the YCR transaction does not proceed; 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.
SOURCE Gensource Potash Corp
