LONDON, UK: Gensource Potash Corporation, the fertilizer development company, confirmed its intention to seek admission of its common shares to trading on the AIM market of the London Stock Exchange.
Gensource is the fertilizer development company focused on potash development at its Tugaske Project in Saskatchewan, Canada.
Gensource Potash Corporation expects that Admission will become effective in early November 2021.
HELM, one of the world’s major independent chemicals and fertilizer distribution companies, is committed to purchasing 100% of Gensource’s production from its Tugaske Project for an initial period of 10 years, with an option to renew thereafter.
In addition to the Offtake Agreement, HELM has also agreed in a binding, conditional commitment letter to Gensource, to invest C$50 million into the Tugaske SPV and guarantee specific accounts in the Tugaske Project debt financing package in exchange for a 33 percent ownership interest in the Tugaske SPV, with the remaining 67 percent ownership interest held by Gensource, subject to Gensource making its required capital and non-cash contributions.
HELM has agreed to market the potash directly to its customer base, providing KClean with the competitive advantage of a direct and efficient delivery network from the mine site to retail. HELM’s fertilizer business, which includes a wide range of products and storage facilities in close proximity to its sales outlets, is firmly established in key agricultural markets across the United States.
Listing on AIM will allow the Company to better access UK and European institutional investors. Gensource’s relationship with HELM, headquartered in Germany, as well as its European-based Senior Lenders, in addition to the Company’s business plan of building future modules around the world, lends itself to increased liquidity through the global reach of an AIM listing.
Michael Ferguson, CEO of Gensource, commented: “We are delighted to confirm our intention to list Gensource on the London Stock Exchange’s AIM market, facilitating the opportunity for stakeholders and interested parties to invest in a high margin, de-risked, long life and sustainable project that sets a new direction in a staid industry.
Our vertical integration model will enable all production capacity built to be directed and pre-sold to a specific market which will assist us in reducing market-side risk. For our Tugaske Project, we will deploy this model through our Offtake Agreement with HELM.
Technical innovation is another key component of our business model and allows for a modular and economic potash production facility that demonstrates superior environmental leadership within the potash industry. By using selective solution mining techniques, salt tailings are entirely avoided, negating the largest decommissioning risk of any potash project and corresponding brine ponds are not needed, allowing us to eliminate the single largest negative environmental aspect of potash mining.
We very much look forward to this exciting new phase, which we believe will provide us with greater visibility and opportunity for growth as we build our market share.”
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