Published: September 14, 2020 |

[Click image to enlarge]

Gensource Potash Corporation has completed the next major milestone for its Tugaske Project. Gensource has now received approval of its development permit application for its potash mine from the Rural Municipality (RM).

Gensource has worked closely with the RM over the past several years, spanning the initial exploration work on its potash lease covering the area, to the tangible development work on the project, a site being chosen and surface land being optioned – all making the project ready for construction.

Earlier this summer, Gensource completed an application for a development permit and submitted it to the RM for consideration. The permit was approved by RM Council at its August meeting under existing RM Bylaws, opening the way to construct their first potash module within the boundaries of the municipality.

“Here at the RM of Huron, we are extremely excited at the issuing of an RM Development Permit to Gensource Potash for the Tugaske Project. Ever since our first contact with Paul [Gensource’s Project Manager], we have been very impressed with their operation and handling of the upcoming project,” said Corey Doerksen, Reeve of the RM of Huron.

“We are particularly excited about the fact that there will be some community and surrounding area involvement during the construction and operational phases. We look forward to many years of cooperation with Gensource in the area,” added Doerksen.

The overall timeline leading to construction is now in the hands of Gensource’s senior lenders (KfW and Société Générale and the process to have project financing coverage approved through the Euler Hermes process. The senior lenders’ due diligence investigations are now essentially complete as planned and discussions are underway on final terms of the debt package.

The final step now is to obtain ECA approval. Current plans are to have the project submitted to the November 5, 2020 meeting of the Euler Hermes’ governing committee and receive approval thereafter. The Euler Hermes approval represents the milestone for senior debt letters of commitment, which will then trigger equity investment in the project. As this process completes, Gensource will continue with the planned project development efforts to ensure that overall timelines are maintained.

Procurement requirements, as driven by the Euler Hermes process, Gensource has engaged MAVEG Industrieausrüstungen GmbH (Maveg) to act as a general procurement agent for the company with respect to a significant package of equipment and services. Maveg has great experience in the procurement of industrial equipment and services for the mining and industrial processing industries globally.

“We have worked tirelessly to get to this stage and receiving a development permit for a potash mine from the RM is one of our most significant permitting-related milestone to date. This development permit, coupled with the Saskatchewan Environment determination already received means the project is truly shovel ready,” said Gensource’s President and CEO, Mike Ferguson.

“Gensource takes pride in maintaining close contact and good communications with all stakeholders – and the linear and efficient manner in which the development permit was approved shows that cooperation and working towards a positive common goal represents the best way to get things done,” added Ferguson.

About Gensource
Gensource Potash is a fertilizer development company based in Saskatoon, Saskatchewan and is on track to become the next fertilizer production company in that province. With a small scale and environmentally leading approach to potash production, Gensource believes its technical and business model will be the future of the industry. 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, that demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning risk, and requiring no surface brine ponds, thereby removing the single largest negative environmental impact of conventional potash mining.

To stop by Gensource’s website, CLICK HERE

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2020 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)