SASKATOON, May 17,
2016 /CNW/ - Further to its news releases dated
April 21 and 23, and May 6, 2016, Gensource Potash Corporation
("Gensource" or the "Company") (TSX.V: GSP) is
pleased to announce that it has completed tranche two of its
previously announced non-brokered private placement financing (the
"Offering"). Tranche one of the Offering consisted of the
sale of 24,910,285 units (the "Units") at $0.07 per Unit for aggregate gross proceeds of
$1,743,720.00. Tranche two of the
Offering consisted of the sale of 3,661,144 Units at $0.07 per Unit for aggregate gross proceeds of
$256,280.00. Each Unit
consisted of one (1) common share in the capital stock of the
Company ("Common Share") and one-half (1/2) of one Common Share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant
shall entitle the holder thereof to acquire an additional Common
Share at a price of $0.12 for a
period of 24 months from the date of issuance.
The net proceeds from the sale of the Units will
be applied to the acquisition cost of the mineral leases from
Yancoal Canada Resources Co. Ltd. ("YCR") as announced on
April 6, 2016, to advance project
work in Gensource's Vanguard Project Area and for general working
capital purposes.
The Company also paid a total of $62,513.20 in finder's fees and issued 893,050
broker warrants ("Broker Warrants") to eligible finders in
connection with the Offering. Each Broker Warrant will entitle the
holder thereof to purchase one Unit at an exercise price of
$0.07 for a period of 24 months
following the closing date of the Offering.
All securities issued in connection with the
Offering are subject to a statutory four-month and one day hold
period.
Mike Ferguson,
President & CEO of Gensource commented, "We are very pleased
with the market interest in this financing. Initially, we set
out to raise $1.5 M, but demand
quickly grew beyond that and we have far exceeded our original goal
closing on a total of $2M raised over
the two tranches. We are excited about the opportunities
presented with the Yancoal Canada Resources lease acquisition, and
very pleased with investor demand in connection with the
Offering.
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on
re-inventing the potash industry by becoming a new, independent
potash producer. Gensource plans to accomplish this goal by
creating a vertically integrated business structure in partnership
with a specific market and developing the next potash production
facility in Saskatchewan as a
small operation that will specifically serve the selected
market. The new facility is planned to use up-to-date
selective dissolution technologies, which would result in a small
operation that leaves no salt tailings on surface, uses no fresh
surface water and creates a smaller carbon footprint than current
operations in the province. 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. The operations of Gensource are
in the development stage only and there is no actual mineral
production. Without a formal independent feasibility study, there
is no assurance that mineral production is feasible on an economic
basis.
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
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 the expected timing for
release of a resource estimate and a preliminary economic
assessment. 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, results of exploration,
the economics of processing methods, project development,
reclamation and capital costs of Gensource's mineral properties,
and Gensource's financial condition and prospects, could differ
materially from those currently anticipated in such statements for
many reasons such as: changes in general economic conditions and
conditions in the financial markets; the ability to find
distributors and source offtake 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
