Gensource Announces First Closing of up to $4,000,000 Brokered Private

SASKATOON , Sept. 19, 2016 /CNW/ – Further to its news releases dated July 18 , and August 29, 2016 , Gensource Potash (TSXV:GSP) announces today it has completed tranche one of the up to $4 million private placement financing (the “Offering“). The Offering consisted of the sale of 16,825,558 units of the Company (the “Units“) at a price of $0.09 per Unit and 13,592,731 flow-through shares (the “Flow-Through Shares“, and together with the Units, the “Offered Securities“) at a price of $0.11 per Flow-Through Share, for aggregate gross proceeds of $3,009,500 . Each Unit consisted of one common share in the capital stock of the Company and one common share purchase warrant (“Warrant“). Each Warrant is exercisable at a price of $0.15 per share beginning on the date that is 12 months following the closing date of the Offering (the “Closing Date“) and expiring on the date that is 24 months following the Closing Date. The Flow-Through Shares are “flow-through shares” as defined in subsection 66(15) of the Income Tax Act ( Canada ) (the “Tax Act“). Tranche two of the Offering is expected to close on or about the week of October 12, 2016 .
The Company intends to use the proceeds from the Offering for drilling, seismic and engineering related to pre-feasibility work for the Lazlo Project, and for the Vanguard Project upon completion of the acquisition with Yancoal Canada Resources Co. Ltd. (“YCR“), as well as for general working capital purposes. The gross proceeds from the sale of the Flow-Through Share portion of the Offering will be used to fund “Canadian exploration expenses” within the meaning of the Tax Act related to the Company’s projects in Saskatchewan.
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