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OR DISSEMINATION IN THE UNITED STATES
Gensource Potash Corporation (“Gensource” or the “Company”)
(TSXV: GSP, AIM: GSP), a fertilizer development company focused on
sustainable potash production, provides the following commentary as
of today’s date:
“The Russian invasion of Ukraine is a human tragedy, immediately
impacting the lives of millions of peaceful civilians,” said Chief
Executive Officer, Mike Ferguson. “We believe the unfolding
situation is likely to create grave concerns that extend far beyond
the region, including, amongst other things, in respect of growing
global food insecurity.”
Brazil Seeking Strategic Fertilizer Solutions
In an effort to reduce its dependency on potash originating from
Russia and Belarus, Brazil’s Minister of Agriculture, Livestock and
Supply, met last week with representatives of Canadian fertilizer
companies, including Gensource, to discuss the current situation in
the sector.
Brazil is an agricultural powerhouse, responsible for 8% of
global fertilizer consumption and is the world’s fourth-largest
fertilizer importer, behind China (24%), India (14.6%) and the U.S.
(10.3%). Brazil has recently published its long-term strategic
fertilizer plan (see https://en.mercopress.com/2022/03/11/
brazil-outlines-30-year-plan-to-cut-fertilizer-overseas-dependency)
and the Company believes it can be an important part of achieving
the plan’s identified goals. Next steps between Gensource and the
Brazilian delegation are being discussed.
Wider Industry Situation
Spot potash prices in Brazil have hit all-time highs of US
$1,065 per metric tonne while average retail potash prices in the
US have climbed to over US $925 per metric tonne. The current
situation flows from several industry and global drivers, starting
in mid-2021 with the flooding of two of Mosaic’s Saskatchewan
mines, K1 and K2, removing some 5 million tonnes per year of
capacity from the potash market. Later in 2021, the European Union
and United States placed sanctions on Belarus, restricting its
potash exports, which account for some 20% of world potash supply.
Potash prices continue to soar today after economic sanctions were
imposed against Russia because of its invasion of Ukraine earlier
this year, restricting an additional 20% of the world’s potash
supply.
With up to 40% of the world’s supply now restricted or in doubt,
growers around the world are uncertain about their ability to
obtain the necessary volumes of potash to support their crop
production plans. Lack of balanced agricultural fertilization
ultimately leads to reduced yields, putting pressure on global food
supply. The general market belief has been that the potash industry
is “well-supplied”, if not “over-supplied”, and that the supply
chain was secure. However, recent events have proven that the
potash industry is neither well-supplied nor is the supply chain
sufficiently resilient. Gensource’s model has always been about
creating new and independent supply chains with simplified direct
delivery of the product to identified markets. The Company believes
this model will lead to a more diverse and more resilient supply
chain for potash in the future.
Financing Update
Company representatives are in London, UK this week as part of
the financing effort for the Company’s potash development project
located near Tugaske, Saskatchewan (the “Tugaske Project”). As
previously disclosed (see press release dated September 23, 2021),
the Company secured binding conditional commitment letters for a
$280 million senior debt facility for the Tugaske Project from KfW
IPEX-Bank and Societe Generale.
The debt facility is intended to fund up to 60% of the
construction and ramp up of the Tugaske Project. The remaining 40%
of the costs for the development of the Tugaske Project will be
funded by equity investment. HELM AG, the project’s off-taker, has
committed to invest $50 million in equity capital. The remaining
$105 million of equity required for the Tugaske Project will be
required to be raised by Gensource in the capital markets.
Saskatchewan Opens Trade Office in London
Coinciding with the Company’s visit to London, the Province of
Saskatchewan is opening a new International Trade office in London.
We are delighted to have been invited to the opening reception and
are eager to network with export and trade experts. The event will
be a great opportunity for Gensource to meet with investors and
potential partners.
2021 Annual Results
Gensource also announces that it has released its audited
financial statements and management’s discussion and analysis for
the year ended December 31, 2021. The reports will be available
under the Company’s profile on SEDAR (www.sedar.com) and on the
Company’s website
(https://gensourcepotash.ca/financials-and-presentations/).
Further information on Gensource Potash Corporation can be found
at www.gensourcepotash.ca
Follow us on twitter @GensourcePotash
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 small scale
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 small 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 complete an
offering of securities; failure to finance the Company’s Tugaske
potash 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220328005225/en/
For further information on Gensource: Gensource Potash
Corporation Mike Ferguson – President & CEO
+1-306-974-6414
Strand Hanson Limited (Nominated & Financial Adviser)
Ritchie Balmer / Rory Murphy / Charles Hammond +44 (0) 20 7409
3494
Peel Hunt LLP (Broker) Ross Allister / David McKeown /
Georgia Langoulant +44 (0) 20 7418 8900
Camarco (Financial PR) Gordon Poole / Charlotte
Hollinshead / Lily Pettifar +44 (0) 20 3757 4997
For any press enquiries please contact us on
gensource@camarco.co.uk
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