REG - Gensource Potash - Final Results

Gensource PotashAnnouncement

30/04/2024 07:00

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RNS Number : 5625M  Gensource Potash Corporation  30 April 2024

 

30 April 2024

 

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
 

2023 Final Results and Board Change

Gensource Potash Releases Audited Financial Statements and Management's
Discussion and Analysis for the year ended December 31, 2023

 

SASKATOON, Saskatchewan and London, U.K., April 30, 2024 - Gensource Potash Corporation ("Gensource" or the "Company") (AIM/TSXV: GSP), a fertilizer development company focused on sustainable potash production, announces that it has released its Audited Financial Statements and Management's discussion and Analysis (MD&A) for the year ended December 31, 2023.

The detailed results of the Audited Financial Statements and MD&A are
available under the Company's SEDAR+ profile on
https://www.sedarplus.ca/landingpage/ (http://www.sedar.plus.cacom) or at
https://gensourcepotash.ca/financials-
(https://gensourcepotash.ca/financials-) and-presentations/
(https://gensourcepotash.ca/financials-and-presentations/) ). The highlights
in this release should be read in conjunction with the Audited Financial
Statements and MD&A. The MD&A provides an analysis of comparisons with
previous periods, trends affecting the business and risk factors.

 

Summary of Key Activities During Q4 2023 and the year ending December 31

 

In today's interconnected world, fostering social and environmental consciousness is not just a choice but an imperative. Gensource's commitment to social and community values reflects our purpose and role in supplying a hungry world with potash, a sustainably produced macronutrient (critical mineral) essential for society's transition towards a more food-secure future. What sets us apart is our commitment to environmental stewardship, evident in our utilization of leading approaches to potash extraction, such as scalable potash production systems and other practices to minimize our ecological footprint.
 
The completion of the financing for the Tugaske Project, our primary focus, is progressing towards the close of the first step to a multi-stage funding that will provide total construction finance (see news release dated December 7, 2023).  Tugaske,  our first project of potentially many similar projects, has been thoroughly vetted by independent third parties through the senior debt due diligence process. The project is fully permitted and ready for construction.
 
Gensource prioritizes community engagement and empowerment, working closely with local stakeholders to ensure that its operations benefit the communities in which it operates. Being a partner in sustainable resource development means participating in making business decisions that create wealth for a growing Indigenous community and a growing province. Our community partnership is a testament to our commitment to sustainable resource development and our dedication to making business decisions that benefit our shareholders, the Indigenous community, and the province.
 
In 2023, Nekaneet First Nation joined Gensource as an investor to implement a Saskatchewan project that will bring multi-generational benefits to our shareholders and the local community. The Company's Tugaske potash project rests on Treaty 4, encompassing the lands of the Cree, Saulteaux, Dakota, Nakota and Lakota, and homeland to the Metis Nation and the lands included in the traditional territory of Nekaneet First Nation. We are all part of this Treaty and must take our corporate responsibility seriously to create real change through meaningful engagement.
 

A significant move in our corporate senior management strategy was to welcome
Wayne Brownlee to our team as an independent director (Chair of the audit
committee). Wayne will significantly enhance our collective knowledge and
experience in the finance and fertilizers industry, not only for moving
Tugaske into construction but also for implementing future projects. With over
three decades of successful senior leadership, communication, and market
planning expertise, Mr. Brownlee will be instrumental in boosting Gensource's
market strategy. With the addition of Mr. Brownlee as an independent director
and Chair of the audit committee, non-independent director Alton Anderson,
CFO, will not seek re-election to the board at this year's annual meeting and
will step down effective April 30, 2024 from the board. The result is improved
corporate governance with only one non-independent director remaining on the
board (Mike Ferguson, CEO).  The Company  thanks Mr. Anderson for his time
serving as a non-independent director during the transition to  an
independent director. Mr. Anderson will continue in his role as CFO of the
Company.

 
According to the International Fertilizer Association (IFA), consumption of fertilizers worldwide was expected to recover by 4% in 2023 to 192.5 million metric tons (mmt), but supply and demand to some degree has been impacted by risk from war, and supply chain interruption in delivery.
 
Gensource focuses on delivering long-term value to our shareholders, customers, employees, and other stakeholders. Throughout the year, we made significant strides in advancing our strategic initiatives. Looking ahead, we remain optimistic about Gensource's prospects. While uncertainties persist in the global economic landscape, our resilient business model, with Management and Board's commitment of time, expertise and financing, the Company will continue to support the innovations that will enable it to navigate challenges and capitalize on opportunities.
 
We are optimistic about the initiatives planned for the upcoming year, such as new market expansion strategies and investments in technology and infrastructure. We are proud of our accomplishments and confident in our ability to sustain growth and profitability in the years to come.
 
The following is a recap of significant events in 2023:
 
·      On January 27, 2023, the Company closed the second and final closing of the non-brokered private placement. The Company issued 11,969,998 Units for aggregate gross proceeds of $1,795,499.70. Each Unit consists of one common share in the capital stock of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each whole Warrant is exercisable for one Common Share (a "Warrant Share") at an exercise price of $0.30 per Warrant Share for a period of 24 months following the date of issuance.
·      On May 29, 2023, the Company completed a non-brokered private placement offering of Units at a price of $0.15 per unit. At the closing, the Company issued 6,118,583 units for aggregate gross proceeds of $917,787.45. Each Unit consists of one common share in the capital stock of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each whole Warrant is exercisable for one Common Share (a "Warrant Share") at an exercise price of $0.30 per Warrant Share for a period of 24 months following the date of issuance.
·      On October 2, 2023, the Company completed a non-brokered private placement offering of Units at a price of $0.15 per unit.  At the closing the Company issued 4,763,588 units for aggregate gross proceeds of $729,538. Each Unit consists of one common share in the capital stock of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each Warrant will be exercisable for one Common Share (a "Warrant Share") at an exercise price of $0.30 per Warrant Share for a period of 24 months following the date of issuance.
·      The Company had cash of $409,488 as at December 31, 2023 compared to $973,520 at September 30, 2023 and $337,831 at December 31, 2022.

 

For further information on Gensource Potash, please contact:

 Gensource Potash Corporation
 Mike Ferguson - President & CEO                           +1-306-974-6414
 Strand Hanson Limited(Nominated & Financial Adviser)      +44 (0) 20 7409 3494
 Ritchie Balmer / Rory Murphy / Charles Hammond
 Peel Hunt LLP (Broker)                                    +44 (0) 20 7418 8900
 Ross Allister / David McKeown / Georgia Langoulant

For any press enquiries please contact Gensource at 306-974-6414.

Further information on Gensource Potash Corporation can be found at
www.gensourcepotash.ca (http://www.gensourcepotash.ca/) Follow us on twitter
@GensourcePotash

 

 

About Gensource

 

Gensource 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 modular 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 modular 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 and negative environmental aspect
of potash mining.

 

Neither the 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.

 

Caution Regarding Forward-Looking Statement

 

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 any
offering of securities by Gensource. 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 could differ
materially from those currently anticipated in such statements for many
reasons such as: failure to finance the Tugaske Project or other projects on
terms which are economic or at all; failure to settle a definitive joint
venture agreement with a party and advance and finance the Tugaske Project;
changes in general economic conditions and conditions in the financial
markets; the ability to find 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; an inability to predict and counteract the effects of COVID-19 on
the business of Gensource, including but not limited to the effects of
COVID-19 on the price of commodities, capital market conditions, restriction
on labour and international travel and supply chains, failure to obtain
required regulatory approvals; 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.

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