RE:RE:RE:RE:Q2btb, maybe the third time will be the charm.
First Essel, then Helm, and maybe number 3 will ring the bell, but what exactly is that large investor getting when laying hundreds of millions of dollars on the table.
It is a great story of what could be if everything comes together, but what percentage of ownership will be required for such a massive risk? What if that investor wants 51% control of Gensource, not just 51% of subsdiary K-Clean?
We have already seen that scenario transpire with Western and Karnalyte as big money demanded corporate control, not just a slice of the pie. Look at both of those corporations boards now. Majority controlled by the big money.
So what assurances would big money require to fund a start up mine like the Tugaske project?
Are there any cheaper Gensource comparables in Saskatchewan also searching for financing?
Do they have a comparable / sustainable potash resources equal to or greater than Western or Karnalyte as these resources were targetted by China and India?
What exactly is Gensource? They have a fantastic vision of something revolutionary, but what else? They have a very strong management team. We know they hold several potash leases, but what hard assets does the corporation own?
Cash?
Proven Resources?
An operating mine?
Mining equipment?
Successful cavern construction intellectual data?
Lets not forget, it was not that long ago Gensource purchased leases (now named Vanguard) from potash giant Yancoal for a couple million dollars, and deep pockets are very aware of that.
If these leases were so promising, why did a huge resource company like Yancoal sell them to a junior potash company for peanuts 7 years ago? Likely a question big money is asking, I would think if they are considering dropping hundreds of millions down!
Was it determined by Yancoal that these leases were better suited for a horizontal selective solution mining technique, and if so does that present its own challenges considering the current state of that novel technology?
Lots of questions out there but here is an easy one
What sets Gensource above all the other juniors currently swimming in the same selective pond?