Gensource Potash (TSXV:GSP) is pleased to announce that the Asset Purchase Agreement (“APA” or “Agreement”), announced April 6, 2017, closed on October 17, 2016.
Gensource Potash (TSXV:GSP) is pleased to announce that the Asset Purchase Agreement (“APA” or “Agreement”), announced April 6, 2017, closed on October 17, 2016. The assets that were the subject of the APA, two mineral extraction leases KL 244 and KL 245 (“Lease” or “Leases”), are now 100% owned by Gensource.
As a summary, the APA was signed between Gensource and Yancoal Canada Resources (”YCR”) to transfer the above leases to Gensource with the following conditions to closing:
- That Gensource would pay the agreed consideration of $2.48M,
- That a definitive off take agreement would be negotiated and executed between the parties, and
- That the then-permits would be converted to mineral extraction Leases and that the ownership of the Leases would be transferred to Gensource.
Gensource completed payment of the agreed purchase price on July 11, 2016, with the funds being held in escrow until the close of the APA.
The off take agreement between the parties was completed and signed on September 26, 2016.
As of October 17th, with receipt or a letter from the Province of Saskatchewan confirming transfer of the Leases 100% to Gensource, the final condition of the APA, transfer of the Leases, is complete and the APA is now closed.
Gensource’s President & CEO, Mike Ferguson, is quoted as saying, “Closing the APA is a significant milestone for Gensource. A lot of effort has been invested by both parties in the raising of capital and negotiating the off take agreement to arrive at this important juncture. We must pass on our thanks and congratulations to YCR for their forthright efforts in completing the Agreement. With the APA now behind us, Gensource will press forward with development plans that we have come to describe as “Potash 2.0”. We have begun work on the detailed feasibility study, we will soon mobilize our drilling/resource confirmation program and we continue to work with our market partners in Brazil and India to add to the tonnage of product that is spoken for under firm off take agreements. While the larger potash industry remains in a state of flux, Gensource believes that its technological advantages coupled with its direct-to-market business model will be the catalysts that will begin to change the industry.”