SASKATOON, Saskatchewan--(BUSINESS WIRE)--Gensource Potash Corp. (“Gensource” or the “Company”) (TSX.V: GSP) is pleased to announce that both the Company and its Joint Venture Partner, Essel Group ME (“EGME”), have appointed individuals to directorship positions in Vanguard Potash Corporation (“Vanguard”).
The directors of Vanguard are:
- Mr. Gagan Goel, Chairman Managing Director, Essel Group ME
- Mr. Punkaj Gupta, Joint Managing Director and Group CEO, Essel Group ME, and
- Mr. Manoj Kumar Palaria, AGM-Finance, Essel Group ME.
- Mr. Dwayne Dahl, Director, Gensource Potash Corp., and
- Mr. Mike Ferguson, President & CEO and Director, Gensource Potash Corp.
Pursuant to the executed definitive Shareholder Agreement (the “Agreement”) for Vanguard, announced April 4, 2017, the parties to the agreement (being Gensource and EGME) are entitled to appoint a total of 5 directors of Vanguard: two nominated by Gensource and three nominated by EGME.
Further, with the appointment of directors now complete, the Agreement allows for the directors to complete the appointment of the management team and begin the detailed planning to complete the development, financing and construction of the Vanguard One project.
As a reminder, EGME and Gensource announced an MOU to create a joint venture company on November 29, 2016 and subsequently announced the execution of the definitive shareholder agreement on April 4, 2017.
The Vanguard joint venture company has been created to be the vehicle that will own, construct and operate the Vanguard One project to be located on a portion of Gensource’s KL 245 subsurface mineral lease. Pursuant to the Agreement , the parties will use their best efforts to subsequently expand the Vanguard One project from its initial 250,000 t/year production to a target production rate of 1.0 M t/year. Vanguard will be furnished with the lease, engineering and geology completed to the end of 2016, project development expertise and unique mining and processing technology by Gensource, while EGME will provide Vanguard with marketing for the potash produced, international logistics expertise and capital financing. On this basis, Vanguard has a clear path forward to implement a first-of-its-kind selective solution mining project that has major economic advantages and, most significantly, massively reduced environmental and community footprint as compared to conventional potash production.
As a reminder, Gensource is in the detailed development phase of the Vanguard One project. The feasibility study, expected to conclude in second quarter 2017, will determine the technical and economic viability of the project.
About Essel Group ME
EGME is a diversified conglomerate operating primarily in the Europe, Middle East, Africa and Asia pacific region.
EGME is part of Essel Group, the Indian multinational conglomerate operating in a broad spectrum of industries including media, packaging, infrastructure and technology. Building on Essel Group’s 90-year history of developing and promoting businesses, EGME is leading the Group’s regional expansion and currently operates subsidiary businesses in the natural resources, energy, industrial supply and logistics, education and financial services sectors. For further information, please visit www.esselgroupme.com
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that 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.
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 a 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.
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 funding and development pursuant to the definitive joint venture agreement with the EGME, the expected timing for release of a reserve estimate and a feasibility study and whether or not the study will conclude that mineral production is feasible on a technical or economic basis, 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, funding and development pursuant to a definitive joint venture agreement with the EGME, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, the ability to complete a feasibility which supports the technical and economic viability of mineral production, 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: failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; an inability to finance and/or complete an update of the resource estimate to a reserve estimate, and a feasibility study which supports the technical and economic viability of mineral production; 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.