Gensource Potash Enters JV to Develop Maverick Project, Canada
[Click image to enlarge]
Gensource Potash Corporation has entered into non-binding memoranda of understanding (MOU) to form a joint venture company (JVCo) to develop the Maverick Project within the Vanguard Area. JVCo will construct, own and operate the potash production facility.
The Vanguard Area comprises approximately 72,000 acres of crown mineral lease area of known and prospective potash minerals within leases KL-244 and KL-245. The area is named Vanguard to underscore the leading-edge, industry-changing approach to potash production the company is developing. The Maverick project is being developed alongside the company’s other project, Vanguard One, within the Vanguard Area.
The parties to the Maverick project have reached an agreement in principal on offtake amount, duration of offtake, equity contribution and JVCo’s operating structure.
The company continues to progress the financing effort for its previously announced Vanguard One module in parallel. However, the recent and significant advancement in development of the Maverick project, also in the Vanguard Area, has resulted in a situation where Maverick may be implemented ahead of Vanguard One, driven by project financing.
“We are extremely pleased to see Maverick advance as quickly and decisively as it has. The fact that Maverick has received formal interest on offtake as well as equity investment as a “bundle” is significant; significant not only because it underscores the commitment to the project by Maverick’s offtaker and the third-party investor, but also because of the accelerating effect it will have on the completion of the senior financing package for Maverick,” said Mike Ferguson, president & CEO of Gensource.
“Gensource is pleased to have formal commitment now for two of its small-scale, efficient and environmentally sustainable projects, a situation that speaks to the validity of the company’s business model and overall approach to the required change in the potash industry,” added Ferguson.
About Gensource
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next potash production facility in that province – but with a fundamentally different approach. Gensource’s President & 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: (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, which is much friendlier to the environment to construct and operate - the output of which can then be directed to a single, specific market.
To stop by Gensource’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2019 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
