Gensource Potash Corporation ("Gensource") is pleased to announce the strategy for the development of multiple potash production facilities, each of which is directed to a specific market.
As previously announced in a Gensource corporate update on March 31, 2017, the Vanguard One Project Feasibility Study is over 75% complete (as of today's date, more than 85% complete) and remains on track to be finished in Q2 2017. With the completion of the Study, Gensource can establish its general model for a production facility and, thereby, create the business template for developing new and additional potash production facilities on the various other land holdings within Gensource's Saskatchewan potash properties. The general business model is for each separate production facility to attract market partners who will provide project financing as well as access to independent markets.
As a result of the memorandum of understanding with Essel Group ME Limited ("EGME") announced on November 29, 2016, and the definitive shareholder agreement with EGME announced on April 4, 2017, Gensource now has a partner who brings off take as well as financing to the Vanguard One project. Hence, the Vanguard One Project facilitates the Study's completion and will become the general model for all future Gensource production facilities.
On September 26, 2016, Gensource announced an off take agreement with Yancoal Canada Resources Co. Ltd. ("YCR Agreement"). A condition of the YCR Agreement a was completion, by March 31, 2017, of the feasibility Study. Gensource, evaluating the EGME partnership in the Vanguard One project as the better opportunity, made the strategic decision to focus on it and ensure the Study is completed in a robust manner such that the project is more fully prepared to move ahead to the construction phase, rather than to try to meet a specific deadline of March 31, 2017 for Study completion. As a result of the feasibility study not being complete at the March 31st deadline, the Yancoal Agreement has been terminated. Gensource maintains good relations with Yancoal and looks forward to future opportunities to work with Yancoal.
As a reminder, Gensource is in the detailed development phase of the Vanguard One project - the feasibility study, expected to conclude in Q2 2017 will determine the technical and economic viability of the project.