SASKATOON, Saskatchewan--(BUSINESS WIRE)--Gensource Potash Corporation ("Gensource" or the "Company") (TSX.V: GSP) a fertilizer development company focused on a sustainable and modular approach to potash production, is pleased to announce its intention to apply for the admission to trading of the Company's common shares on the London Stock Exchange’s AIM market (“AIM”). The Company is seeking admission to AIM in order to enhance its access to UK and European institutional investors. Gensource has received significant interest given its business relationship with off-take partner Helm AG, lead debt arrangers KfW IPEX-Bank and Societe Generale S.A. and its uniquely ESG-friendly approach to potash production.
Mike Ferguson, President and CEO of Gensource Potash commented:
"We see the potential admission to trading on AIM as a natural step for Gensource to support its next phase of growth as we transition to a sustainable potash producer with the Tugaske Project in Saskatchewan, Canada. Gensource is a unique investment proposition in the potash sector, located in a Tier One mining jurisdiction, offering strong ESG credentials, a close relationship with off-take partner Helm AG and a nimble pricing structure that allows us to deal straight with the retailer. The London market is known for its deep knowledge of the mining sector and as an investment destination for institutional capital from around the world and a dual listing would increase the Company's international profile and facilitate improved access to UK and international institutional investors.”
Potash production focussed on strong ESG standards
Gensource has an ESG-friendly approach to potash production through its use of selective solution mining. Its projects will have no brine ponds, eliminating the most environmentally damaging aspect of traditional potash mines and will create no salt tailings, which represent an intractable decommissioning issue for traditional potash mines. The Gensource method also benefits from a reduction in fresh water consumption compared to traditional potash solution mines and its relative small size compared to traditional projects, making the project size-appropriate for small-town rural Saskatchewan – augmenting the local community without overwhelming it. All in all, the Tugaske Project, we believe, represents a transformational approach to potash production.
Gensource has a vision to help achieve food security by supplying the world with a key macronutrient at an affordable cost within an open, transparent, and sustainable environment.
With the small scale, modular and repeatable production facilities, Gensource has the potential to deliver controlled production growth in a manner that can align well with demand growth.
Offtake Partner and Project Debt
Gensource officially announced Helm AG and its North American subsidiary, Helm Fertilizer Corp. (together “Helm”), as the Tugaske Project’s off-taker on 30 January 2020. Helm, founded in 1900, is a privately-owned company based in Hamburg, Germany. Helm is a major independent chemicals marketing enterprise and provides access to the world’s key markets through its specific regional knowledge and more than 100 subsidiaries, sales offices, and participations in over 30 countries. The terms of the off-take for the Tugaske Project will have Helm purchase 100% of the production from the Project for 10 years, renewable thereafter.
In October 2019 (see Company announcement dated 18 October 2019), Gensource announced it formally mandated KfW IPEX-Bank GmbH (“KfW”) to act as Lead Arranger for the senior debt component of the Tugaske Project finance package. KfW IPEX-Bank is responsible for international project finance within the larger KfW Group, and is headquartered in Frankfurt, Germany. Further, in a news release dated May 19, 2020, Gensource announced that the French multinational bank, Societe Generale S.A., has also joined the banking group for the Tugaske Project as joint lead arranger of the debt facility.
Proposed admission to trading on AIM
In connection with the proposed admission to trading on AIM, Gensource has appointed Strand Hanson Limited to act as the Company's Nominated Adviser and Peel Hunt LLP as the Company’s lead broker. It has also appointed Camarco to support the Company’s international communications.
Additionally, a select group of UK legal advisers and a reporting accountant are expected to be appointed in the near term.
The Company’s common shares will continue to be listed and traded on the TSX Venture Exchange.