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Gensource Potash Corp AGCCF


Primary Symbol: V.GSP

Gensource Potash Corporation is a Canada-based fertilizer development company. The Company is focused on developing resource opportunities with a specific focus on potash development. The Company operates under a business plan that has two key components: 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 technical innovation, which allows for a modular and economic potash production facility, which demonstrates environmental leadership within the industry, producing no salt tailings, therefore eliminating decommissioning. Its projects include Tugaske Project, Vanguard Area and Lazlo Area. The Vanguard Area is 100% owned in central Saskatchewan, located 170 kilometers (km) South of Saskatoon, 150 km North-West of Regina on a provincial highway system. The Lazlo Area is located in central Saskatchewan.


TSXV:GSP - Post by User

Comment by mdjbrownon Feb 06, 2024 12:09pm
192 Views
Post# 35865478

RE:Just my two cents

RE:Just my two cents Agree 100% BigJake

There are some amazing execs out there including the folks at Gensource who were involved in the exciting Potash One story. Many of whom have gone on to start other successful companies, including one gentleman I believe who is the head honcho at a candian investment firm that finances pre-revenue start ups, so one might ask why they are not involved in investing in this start up venture.

The big difference here from other mining small caps I believe is the novel mining process, and why I believe it has been much tougher to acquire the equity portion of project financing in order to break ground.  Debt equity is basically a loan with minimal risk to investment, but raising equity on the other hand is a huge risk. Even if the equity financier holds 51% controlling interest in the entire project, it is not worth much if the company fails to reach its intended production objective. 

I am not involved in the world of finance, but I would assume any investment firm willing to invest hundreds of millions of dollars would at very least want to see proof of concept before signing the cheque, especially now that Western's Milestone project has faced turbulent times in their $200 million plus quest to acheive the exact same underground mine process Gensource is trying to accomplish.  

Sounds really, really simple BigJake, but if the folks at Gensource are confident they have figured this elusive riddle out, would it not be prudent to build an inexpensive proof of concept mine and they will never need to seek financing again, as big money will come in droves and Gsp can build all the modules they want.

The 8 year delay in doing just that since Essel walked away may offer some clues!
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