Palisade Research: Gensource Potash Under The Radar With A C$500M Off-Take

A recent report by Palisade Research highlighted Gensource Potash (TSXV:GSP) and their recently announced off-take.
As quoted in the report:

On April 6, 2016, Gensource Potash Corp (TSXV:GSP), announced the signing of an asset purchase agreement and off-take term sheet with Yancoal Canada Resources, a wholly-owned subsidiary of Yanzou Coal Mining Company (YZC), a US$6.4 billion company and majority owned by state-owned Yankuang Group. Through its businesses, Yankuang is involved in coal production, engineering, manufacturing, transportation and electricity. Yankuang is a deep-pocketed conglomerate, and the off-take will allow Gensource to shop around for project financing.
The asset purchase agreement defines the terms for the purchase of two potash mining leases that make up some 63,800 acres of land adjacent to our existing Lazlo Project (the resource is all part of the same basin). There has been over C$4 million in field work completed on the leases, including: two drilled wells, cored, logged and assayed for potash; 110 kilometers of 2D seismic, extensive geological and engineering work.
Most importantly, Gensource will be able to use the acquired data to release a NI 43-101 report to define a formal resource, which will back-in to an already completed scoping study to produce the all-important PEA. Thus, Gensource will have a construction decision within 12 months, all for a small price tag. To put this into perspective, Gensource spent C$5 million to get to where they are, while other potash juniors have spent northwards of C$70 million.
An updated resource is first on the horizon. Then another well needs to be drilled and seismic shot to get to a PEA. Gensource recently raised enough flow-through dollar to fully fund the well! At the same time we expect construction financing obtained and construction to begin in December 2016. Production is set for Q1 2018 – not bad for a sleepy company. Let’s go.

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