The Conversation (0)
Gensource Enters LOI with Arizona Agropecuaria for Product Delivery
Jul. 28, 2015 03:26PM PST
Potash Investing
Gensource Potash Corporation (TSXV:GSP) announced that it has signed a non-binding letter of intent (LOI) with Arizona Agropecuaria. The LOI defines the high-level relationships of the parties and the intended business structures that will allow for the most direct and efficient delivery of product to end-users. The LOI also identifies opportunities for capital market participants …
Gensource Potash Corporation (TSXV:GSP) announced that it has signed a non-binding letter of intent (LOI) with Arizona Agropecuaria. The LOI defines the high-level relationships of the parties and the intended business structures that will allow for the most direct and efficient delivery of product to end-users. The LOI also identifies opportunities for capital market participants and/or Arizona, to fund the Saskatchewan operation.
As quoted in the press release:
As announced March 17, 2014, Gensource has been working with a market partner, Arizona Agropecuaria (“Arizona”), to create a vertically integrated business structure to allow the direct manufacture and shipment of potash fertilizer from a scalable, dedicated mine in Saskatchewan to a specific market in Brazil. Following preliminary business negotiations, work began in January, 2015, to identify the specific end users in Brazil interested in participating in this approach to potash supply – a novel approach within the potash industry.
From that work, Gensource is pleased to announce that it has signed a follow-on non-binding letter of intent (LOI) with Arizona, including a form of definitive offtake agreement. The LOI defines the high-level relationships of the parties and the intended business structures that will allow for the most direct and efficient delivery of product to end-users. The LOI also identifies opportunities for capital market participants and/or Arizona, to fund the Saskatchewan operation.
Arizona is now in the process of signing interested end users. If this proceeds satisfactorily, definitive agreements will be settled with customary terms and conditions, including funding budgets.
As a precaution, Gensource notes that there can be no assurance that the arrangements with Arizona can be completed on mutually satisfactory terms or at all. None of the agreements are yet binding and definitive terms have not been settled.
Click here for full Gensource Potash Corporation (TSXV:GSP) press release.
Click here for full Gensource Potash Corporation (TSXV:GSP) profile.