Gensource releases potash strategy

The Vanguard One Project Feasibility Study is over 75% complete and remains on track to be finished in 2Q17. With the completion of the Study, Gensource can establish its general model for a production facility and, thereby, create the business template for developing new and additional potash production facilities on the various other land holdings within Gensource’s Saskatchewan potash properties. The general business model is for each separate production facility to attract market partners who will provide project financing as well as access to independent markets.

As a result of the memorandum of understanding with Essel Group ME Ltd announced on 29 November 2016, and the definitive shareholder agreement with EGME announced on 4 April 2017, Gensource now has a partner who brings off take as well as financing to the Vanguard One project.

Hence, the Vanguard One Project facilitates the Study’s completion and will become the general model for all future Gensource production facilities. In September, Gensource announced an off take agreement with Yancoal Canada Resources Co. Ltd. A condition of the YCR Agreement was completion, by 31 March 2017, of the feasibility study.

Gensource, evaluating the EGME partnership in the Vanguard One project as the better opportunity, made the strategic decision to focus on it and ensure the Study is completed in a robust manner such that the project is more fully prepared to move ahead to the construction phase, rather than to try to meet a specific deadline of 31 March 2017 for Study completion. As a result of the feasibility study not being complete at the March deadline, the Yancoal Agreement has been terminated. Gensource maintains good relations with Yancoal and looks forward to future opportunities to work with Yancoal.

Read the article online at: https://www.globalminingreview.com/mining/24042017/gensource-releases-potash-strategy/