SASKATOON, Aug. 29, 2016 /CNW/ - Further to its news
release dated July 18, 2016,
Gensource Potash Corporation ("Gensource" or the
"Company")(TSX.V: GSP) announces that it has amended the
terms of its previously announced best efforts marketed private
placement financing (the "Offering"), led by Industrial
Alliance Securities Inc. ("IA"). The common share portion of
the offering will now include a full warrant (a "Warrant")
exercisable at a price of $0.15 per
share beginning on the date that is 12 months following the closing
date of the Offering and expiring on the date that is 24 months
following the closing date of the Offering. The Offering will now
consist of the sale of: (i) up to 27,777,777 units ("Units")
at a price of $0.09 per Unit, with
each Unit consisting of one common share in the capital stock of
the Company (the "Common Shares") and one Warrant; and (ii)
up to 13,636,363 Common Shares issued on a flow-through basis (the
"Flow-Through Shares") at a price of $0.11 per Flow-Through Share. IA still retains an
option, exercisable up to 48 hours prior to the closing time of the
Offering, to cause the Company to issue up to an additional 15% of
the maximum size of the Offering in Units and/or Flow-Through
Shares.
It is now expected that the closing of the Offering will occur
on or about September 15, 2016 and is
subject to the satisfaction of certain conditions, including
receipt of all applicable regulatory approvals including the
approval of the TSX Venture Exchange. All securities to be issued
pursuant to the Offering will be subject to a statutory four month
and one day hold period.
Mike Ferguson, President and CEO
of Gensource, stated: "We have received an increased level of
interest in our financing, and, as a result, we have decided to
include a full warrant to the common share portion of the private
placement in order to cater to orders from institutional and other
strategic investors.
For further information about the Offering please refer to the
Company's news release dated July 18,
2016 available on the Company's issuer profile on SEDAR at
www.sedar.com.
About Gensource
Gensource is based in Saskatoon,
Saskatchewan and is focused on developing the next potash
production facility in that province, using new and more efficient
mining and processing methods and employing a
new-to-the-potash-industry business model that connects the
consumer of potash (agricultural producers) as directly as possible
to the production of the product. Gensource's President and CEO,
Mike Ferguson, P.Eng., has assembled
a management and technical team with direct and specific expertise
and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key
components: vertical integration with the market to ensure that all
production capacity built is directed to a specific market,
eliminating market-side risk, and technical innovation which will
allow for a small and economic potash production facility,
the output of which can then be directed to a single, specific
market.
Neither 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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 completion of the Offering and the YCR
transaction (as disclosed in the Company's news release dated
July 18, 2016), the expected timing
for release of a resource estimate and a preliminary economic
assessment, as well as a feasibility study, and the establishment
of vertical integration partnerships and the sourcing of end use
potash purchasers. 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 relating to, among other things, completion of the Offering
and the YCR transaction, a refund of lease conversion costs in the
event that the YCR transaction does not proceed, results of
exploration, the economics of processing methods, project
development, reclamation and capital costs of Gensource's mineral
properties, Gensource's financial condition and prospects, the
ability to establish viable vertical integration partnerships and
the sourcing of end use potash purchasers, could differ materially
from those currently anticipated in such statements for many
reasons such as: an inability to complete the YCR transaction or
the Offering on the terms as announced or at all, including the
conditions for regulatory approval and financing; denial by
ministerial authorities of a refund of lease conversion costs in
the event that the YCR transaction does not proceed; changes in
general economic conditions and conditions in the financial
markets; the ability to find distributors 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; 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.
SOURCE Gensource Potash Corp