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RNS Number : 7751Q
Gensource Potash Corporation
23 February 2023
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES
Gensource Potash Announces Strategic Business Relationship with
Nekaneet First Nation
and Provides Tugaske Project Update
SASKATOON, Saskatchewan and London, U.K. - February 23, 2023 -
Gensource Potash Corporation ("Gensource" or the "Company")
(AIM/TSXV: GSP), a fertilizer development company focused on
sustainable potash production, is honoured to announce a new
business relationship with and direct strategic investment by
Nekaneet First Nation.
The relationship encompasses equity ownership in Gensource and
therefore a direct interest in the development of the Gensource
potash projects in Saskatchewan. The Company's strategic
relationship with Nekaneet First Nation was formalized through its
participation in Gensource's recently closed private placement (see
news release dated January 31, 2023).
Gensource is proud to welcome Nekaneet as a business partner in
its goal to implement environmentally-leading modular and scalable
potash production systems. Being a partner in sustainable resource
development means participating in making business decisions for
the creation of wealth to the benefit of a growing Indigenous
community and growing province.
"Part of truth and reconciliation means working together as a
community and as leaders in local development opportunities. In
this case, the opportunity is to participate together in the
ownership and development of resource projects in Saskatchewan to
the direct benefit of our communities. Against this backdrop, we
are very pleased to have Nekaneet First Nation join us in our
efforts to evolve the potash industry," said Mike Ferguson,
President & CEO of Gensource. "Our goal is to implement a
Saskatchewan project that will bring multi-generational benefits to
our shareholders and the local community. Gensource's Tugaske
potash project is located on Treaty 4, encompassing the lands of
the Cree, Saulteaux, Dakota, Nakota and Lakota, and homeland to the
Metis Nation, and lands included in the traditional territory of
Nekaneet First Nation. We are all part of this Treaty and we must
take our corporate responsibility seriously to create real change
through reconciliation. Nekaneet First Nation is a leader in so
many ways, and it is that leadership sensibility that aligns so
well with Gensource and its goals."
"Equity ownership in a strategic asset that will produce a
commodity the world needs provides a direct connection and benefit
to First Nations in Saskatchewan's potash industry rather than the
status-quo model of ancillary participation in resource projects,"
said Alvin Francis, Chief of Nekaneet First Nation. "It creates
real ownership, early in the development of the Company where
growth can potentially bring multi-generational prosperity to
growing communities like Nekaneet First Nation."
Tugaske Update
A brief update on the development of the Company's Tugaske
potash project (the "Tugaske Project") is provided below.
Emerging through the bridge engineering work, significant
opportunities have been identified in a number of areas where the
Company believes it can improve the overall financial and
operational performance of the Project. Of these, two specific
areas are being investigated where process and technology
improvements have the potential to yield significant optimizations,
simplifications and cost savings: underground cavern design and
wellfield configuration, and; optimization of the crystallization
process in the surface plant.
The Company's work in these areas has presented opportunities
for material cost reduction and simplification and these
opportunities are being pursued aggressively.
Recall that the bridge engineering is based on the FEED study
completed in late 2021 and disclosed in the Company's NI 43-101
Technical Report dated October 14, 2021. The bridge engineering was
initiated to:
-- Investigate the impacts of:
o global cost escalation witnessed since very early in 2022,
and
o supply chain problems resulting in both cost escalation and
time delays and delivery difficulties.
-- Review redundancies, design factors and overall plant life design basis.
-- Bring all of the above together into an updated construction
plan including capital and operating cost estimates. The final
deliverables will include an updated NI 43-101 Technical Report
detailing the Tugaske Project.
Early indications suggest significant savings can be obtained in
both capital expenditures and operating expenditures in addition to
significant simplifications of the Tugaske Project and its systems.
Plans for the coming months include completing engineering followed
by actual test work of the potential changes to confirm process
workability and equipment function. Further, the Company is looking
into the feasibility of drilling the first cavern at the Tugaske
Project as early as possible in the pre-construction phase, in
order to confirm the cavern placement and layout and re-confirm the
design parameters being employed in the design of the full cavern
system. Exciting times ahead for the Tugaske Project.
About Nekaneet First Nation
Nekaneet First Nation has a long history in the Cypress Hills,
located in southwest Saskatchewan. When Treaty 4 was signed on
September 16, 1874 in Fort Qu'Appelle, Saskatchewan with First
Nations across southern Saskatchewan, Nekaneet and approximately
100 followers decided to stay in their ancestral land in the
Cypress Hills, where the First Nation calls home.
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.
For further information on Gensource Potash, please contact:
Gensource Potash Corporation
Mike Ferguson - President & CEO +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
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 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 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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