Essel Group ME and its joint venture partner, Gensource Potash (TSXV:GSP) , have appointed directors to their joint venture Vanguard Potash Corp.
- From EGME:
- Gagan Goel, chairman and managing director, EGME;
- Punkaj Gupta, joint managing director and group chief executive officer, EGME;
- Manoj Kumar Palaria, general manager, finance, EGME.
- From Gensource:
- Dwayne Dahl, director, Gensource Potash;
- Mike Ferguson, president and CEO and director, Gensource Potash.
Pursuant to the shareholder agreement for Vanguard, Gensource and EGME are entitled to appoint a total of five directors to Vanguard: two nominated by Gensource and three nominated by EGME.
The directors of Vanguard will now appoint management and begin detailed planning to complete the development, financing and construction of the Vanguard One project.
EGME and Gensource announced a memorandum of understanding to create a joint venture company on Nov. 29, 2016, and announced execution of the agreement on April 4, 2017.
Vanguard will own, construct and operate the Vanguard One project, which will be located on a portion of Gensource’s KL 245 subsurface mineral lease. Pursuant to the agreement, the parties plan to expand the Vanguard One project from its initial 250,000-tonne-per-year production to a target production rate of one million tonnes per year. Gensource will provide Vanguard with the lease, engineering and geology completed to the end of 2016, as well as the project development expertise and unique mining and processing technology. EGME will support Vanguard with marketing the potash end-product, international logistics expertise and capital financing. Vanguard now has a clear path to developing Vanguard One, a project that will have major economic advantages over conventional potash projects, as well as a massively reduced environmental and community footprint.
As previously announced, the feasibility study for Vanguard One will be completed in the second quarter of this year, with further details of the project’s economic and technical progress to be provided.
About Gensource Potash Corp.
Gensource is based in Saskatoon, Sask., and is focused on developing the next potash production facility in that province. Gensource’s president and CEO, Mike Ferguson, PEng, has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components — vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk; and technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.
Caution Regarding Forward-Looking Statements
This news release may contain forward looking information and Gensource cautions readers that forward looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Gensource included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Gensource and Gensource provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Gensource’s future plans, objectives or goals, to the effect that Gensource or management expects a stated condition or result to occur, including funding and development pursuant to the definitive joint venture agreement with the EGME, the expected timing for release of a reserve estimate and a feasibility study and whether or not the study will conclude that mineral production is feasible on a technical or economic basis, and the establishment of vertical integration partnerships and the sourcing of end use potash purchasers. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, funding and development pursuant to a definitive joint venture agreement with the EGME, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Gensource’s mineral properties, the ability to complete a feasibility which supports the technical and economic viability of mineral production, Gensource’s financial condition and prospects, the ability to establish viable vertical integration partnerships and the sourcing of end use potash purchasers, could differ materially from those currently anticipated in such statements for many reasons such as: failure to obtain funding and undertake development pursuant to the definitive joint venture agreement with the EGME; an inability to finance and/or complete an update of the resource estimate to a reserve estimate, and a feasibility study which supports the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; the ability to find distributors and source off-take agreements; changes in demand and prices for potash; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Gensource’s activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Gensource’s forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Gensource’s forward-looking statements. Gensource does not undertake to update any forward-looking statement that may be made from time to time by Gensource or on its behalf, except in accordance with applicable securities laws.
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