Gensource Potash Corp has closed its previously announced non-brokered private placement financing. The company raised gross proceeds of just over $0.5 million. This financing is part of Gensource’s plan to continue development work at its Lazlo site. Gensource’s CEO, Mike Ferguson: “We are very pleased with the response of the market to our project development plans, which are based on our business plan of vertical integration and small scale operations. We continue to find strong support from those who understand the potash industry and understand our disruptive business model. We see clearly that the industry should not be defined and controlled from the production side but rather, from the market side. With that as the driving fundamental, together with our selective mining technologies, Gensource continues its plans to become a new, independent, small scale producer in the potash industry.”
Gensource is based in Saskatoon, Saskatchewan and is focused on re-inventing the potash industry by becoming a new, independent potash producer. Gensource plans to accomplish this goal by creating a vertically integrated business structure in partnership with a specific market and developing the next potash production facility in Saskatchewan as a small operation that will specifically serve the selected market. The new facility is planned to use up-to-date selective dissolution technologies, which would result in a small operation that leaves no salt tailings on surface, uses no fresh surface water and creates a smaller carbon footprint than current operations in the province.
The Lazlo area lies located in central Saskatchewan along an infrastructure corridor between the major population centres of Saskatoon and Regina. The area is located over a thick and rich region of the Prairie Evaporite formation known locally as the “Davidson Sub-basin”. Lazlo is a very prospective area within the Prairie Evaporite and boasts:
- Located near town of Craik on a well serviced infrastructure corridor between Regina and Saskatoon
- Highway 11 runs through property
- Rail line runs through property
- HV Power runs through property
- Total area 123,000 acres
- Several projects or mining blocks identifiable within the one area
- Three on-property historic drill holes
- Historical NI43-101 indicates excellent grades, thickness and temperatures
The area is large and will accommodate several specific projects. The potential projects are made up of freehold mineral leases (21 years duration with renewal built in), plus a novel approach to engaging the interspersed Crown minerals.
Gensource Plans for the first project within the Lazlo area to have design parameters as shown below. These parameters are based on the foreseen market size for the first small, but scalable, project.
