The Conversation (0)
Gensource Capital Corporation (TSXV:GSP) announced that it has executed a binding term sheet with Canada Potash Corp. in which they will combine efforts to explore and develop potash properties in Saskatchewan.
Gensource Capital Corporation (TSXV:GSP) announced that it has executed a binding term sheet with Canada Potash Corp. in which they will combine efforts to explore and develop potash properties in Saskatchewan.
As quoted in the press release:
Under the Term Sheet, Gensource has agreed to issue from its treasury to CPC that number of shares so that CPC will hold 51% of Gensource’s issued and outstanding shares, in consideration for:
Gensource acquiring from CPC Saskatchewan potash exploration permits KP445 and KP437 (the “Permits”);
CPC using reasonable commercial efforts to introduce Gensource to CPC’s contacts and establish working relationships between Gensource and CPC’s contacts carrying on business in the fields of: (i) project joint ventures; (ii) project finance; (iii) the import and sale of potash internationally, including to and within the People’s Republic of China (“PRC”); and (iv) the shipping or logistics associated with the distribution of potash internationally, including to and within the PRC; and CPC using reasonable commercial efforts, to the extent commercially practical, to assign to Gensource any contracts or agreements CPC has with respect to the matters described in clause (b) above.
Gensource’s CEO, Mike Ferguson, said:
Gensource is very pleased to announce this agreement to align and combine business efforts between our two companies. Gensource’s business model requires that all three required pillars that support a successful project be in place as early as possible in the project development cycle.
To view the whole press release, click here.
