Gensource Potash Provides General Business Update Highlighting Vertical Integration Strategy

Gensource Potash (TSXV:GSP) announced the following information on its activities. The intent is to give a general update on its business activities for the last quarter of 2015 and the first quarter of 2016.
As quoted in the press release:

The last quarter of 2015 and first quarter of 2016 has been a busy time at Gensource. In that period, we worked with our Brazilian partner to identify additional end-user market partners – agricultural groups in Brazil who will be the future customers for our potash. We also advanced similar business discussions with other geographically diverse groups. Additionally, during that period, we raised over $2M (split almost equally between “hard” shares and “flow through” shares) to execute our immediate business plan. The flow through investment will be used for follow-on drilling and seismic work (“Canadian Exploration Expenditures”) and the “hard” dollars raised will be used for advancing project development, including engineering work, initial phase environmental assessment and general working capital.
Management continues to introduce and explain our vertical integration strategy to other large agricultural producer groups and/or retailers and, from that perspective, build the complement of business partner relationships required for the supply of potash fertilizers. These include businesses such as well-organized farmer co-operatives and logistics groups with their essential infrastructure for product storage and transport. We are working with both new contacts as well as our existing partner.
The potash market has seen a tough couple of years with prices reaching lows that start to impact the high cost producers in the industry. One thing is certain as the industry rebounds: that, no matter what the benchmark price may be, those agricultural producers who are vertically integrated will see an advantage to their bottom line, because, to the extent that they are vertically integrated, they will see cost-of-production product rather than “world price” product. That is a fundamental of vertical integration.
As a summary – with our vertical integration strategy and our work to develop small scale, highly cost-efficient mining and processing methods and technologies, we are attempting to provide end users with alternatives to traditional potash supply channels that have not been available up to now, and we plan to do so in a way that has tremendous environmental improvements over legacy methods.

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