TIDMGSP
RNS Number : 3468X
Gensource Potash Corporation
26 August 2022
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES
Gensource Announces Date for Shareholder Update Call and
Provides Global Fertilizer Market Update
SASKATOON, Saskatchewan and London, U.K., August 26 2022 -
Gensource Potash Corporation ("Gensource" or the "Company") (TSXV:
GSP, AIM: GSP) announces today its plans to host a shareholder
update call for Wednesday August 31, 2022 at 4:00 PM Eastern time,
during which the Company will provide an update on the development
of its potash project near Tugaske, SK (the "Tugaske Project"),
discuss next steps, current fertilizer market industry dynamics and
respond to shareholder questions. The call is scheduled for 4:00 pm
Eastern time. Participants can join the call by dialing: 1-
844-534-3191 . If shareholders would like any specific items
addressed during the call, they should email questions in advance
to: info@gensource.ca
Gensource is actively pursuing the equity capital markets to
complete the full project financing package for the Tugaske Project
(in conjunction with the previously announced committed debt
financing), which will allow the first module at the Tugaske
Project to commence construction. However, turmoil in the global
financial markets, exacerbated by Russia's invasion of Ukraine,
have caused delays in completing the equity financing. Recent
comments by Deputy Prime Minister Chrystia Freeland that
Saskatchewan potash is "more important then ever" and is now
"geopolitically essential" is an example of how vital potash supply
is and how vital Gensource's Tugaske Project production is to
creating a new source of potash supply. Equity investor groups are
now also beginning to see potash production in the same way.
"Although the first half of 2022 saw challenging capital
markets, management believes the supply and demand dynamics for
fertilizer remain robust. Global supplies have been curbed or
disrupted sharply and, accordingly, management believes that there
is great demand for certainty-of-supply for fertilizer products,
particularly potash." said Mike Ferguson, CEO of Gensource Potash.
"Our modular technology, world-leading environmental profile, and
80,000 acres of subsurface mineral rights available for mining in
the Company's Vanguard Area make Gensource a natural fit for
investors looking to enter the potash production space."
HELM AG and HELM Fertilizers (together, "HELM"), the Company's
future equity partner and the Tugaske Project's off-taker, remains
focused on the Tugaske Project with its $50M equity investment
commitment (previously announced) and is additionally providing
short term support for the completion of the project financing
effort and the current bridge engineering work. Financing and
construction of the first module at Tugaske remains the priority
focus for the Company and HELM, with initial planning for a second,
previously announced, module at the Tugaske Project expected to be
incorporated as the Tugaske Project develops.
Executive Vice President, Crop Nutrition Helm AG, Olivier
Saulnier, commented, "We are looking forward to participating in
the Tugaske project not only to capitalize on the marketing
opportunities and enhance our current supply chain for potash
distribution, but also to be part of the exceptional environmental
profile of the project".
"The strength of the potash market and the current supply
constraints provide an opportunity to accelerate potential
high-return strategic growth opportunities in the potash world. We
intend to capture this opportunity by adding more modules with HELM
at the Tugaske Project and other partners at other projects", added
Mike Ferguson of Gensource.
Agriculture And Potash Market Update
The following are some general insights into the agriculture
sector. While Gensource is not an agricultural commodity producer,
the potash and general fertilizer markets are generally driven by
agricultural commodities.
-- Global grain and oilseed stocks-to-use ratios remain well
below historical average levels, which we believe will continue to
be supportive for crop prices. Prices for key crops such as corn,
soybeans and wheat are up 25 to 35 percent compared to the 10-year
average, providing strong incentive for growers to increase
production.
-- The United States Department of Agriculture (USDA) projects
that Ukrainian wheat and corn production will be down by more than
40% and combined Ukrainian exports of corn, wheat and barley will
be down by approximately 60% year-over-year in 2022/23.
-- United States crop conditions started the 2022 growing season
favorably, however, recent hot and dry weather has accelerated crop
development and could limit yield potential. In Western Canada,
growing conditions have improved from the severe 2021 drought.
-- Restricted supplies of potash from Russia and Belarus kept
potash prices at historically high levels through the first half of
2022. Potash shipments from Russia and Belarus were estimated to be
down approximately 25 and 50 percent respectively in the first half
of 2022, with the majority of Belarus exports occurring in the
first quarter.
-- For potash, given the severe restrictions in place, it is
expected that the current global supply shortages will continue for
the foreseeable future as management believes the supply problems
have now become structural in nature.
For further information on Gensource, please contact:
Gensource Potash Corporation
Mike Ferguson - President & CEO
info@gensource.ca +1-306-974-6414
Strand Hanson Limited (Nominated & Financial
Adviser) +44 (0) 20 7409 3494
Ritchie Balmer / Rory Murphy / Charles Hammond
Peel Hunt LLP (Broker) +44 (0) 20 7418 8900
Ross Allister / David McKeown / Georgia
Langoulant
Camarco (Financial PR) +44 (0) 20 3757 4997
Gordon Poole / Charlotte Hollinshead / Lily
Pettifar
For any press enquiries please contact us on
gensource@camarco.co.uk
Further information on Gensource Potash Corporation can be found
at www.gensourcepotash.ca
Follow us on twitter @GensourcePotash
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
About Gensource
Gensource is a fertilizer development company based in
Saskatoon, Saskatchewan and is on track to become the next
fertilizer production company in that province. With a modular and
environmentally leading approach to potash production, Gensource
believes its technical and business model will be the future of the
industry. Gensource operates under a business plan that has two key
components: (1) vertical integration with the market to ensure that
all production capacity built is directed, and pre-sold, to a
specific market, eliminating market-side risk; and (2) technical
innovation which will allow for a modular and economic potash
production facility, that demonstrates environmental leadership
within the industry, producing no salt tailings, therefore
eliminating decommissioning risk, and requiring no surface brine
ponds, thereby removing the single largest and negative
environmental aspect of potash mining.
Neither the 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 Statement
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 any offering of securities by Gensource.
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 could
differ materially from those currently anticipated in such
statements for many reasons such as: failure to finance the Tugaske
Project or other projects on terms which are economic or at all;
failure to settle a definitive joint venture agreement with a party
and advance and finance the Tugaske Project; changes in general
economic conditions and conditions in the financial markets; the
ability to find 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; an inability to predict and
counteract the effects of COVID-19 on the business of Gensource,
including but not limited to the effects of COVID-19 on the price
of commodities, capital market conditions, restriction on labour
and international travel and supply chains, failure to obtain
required regulatory approvals; 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.
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END
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