Gensource Potash Corporation (“Gensource” or the “Company”) (TSX.V: GSP) is very pleased to announce that it has entered into a second non-binding Memorandum of Understanding (MOU) with a senior North American agriculture industry player (the “Off-taker”). The MOU is for the purchase of 100% of the production, planned at 250,000 tonne/year, from one of Gensource’s small scale potash production facilities to be located in its Vanguard area in central Saskatchewan.
As quoted in the press release:
The general terms of the MOU contemplate:
– Purchase of 100% of the production from one “module” of 250,000 tonne/year capacity,
– Industry-standard pricing structure for delivery of product to the US market,
– 10-year term with an option to renew, – Take or pay provisions,
– Allowance for the provision of financial guarantees in the definitive off-take agreement suitable to support third-party project financing,
– Right of first refusal for marketing of product from any future production expansions at the project.