SASKATOON, Saskatchewan / March 17, 2014 / Gensource Potash Corporation (“Gensource” or the “Company”) (TSX.V: GSP) is pleased to announce the completion and execution of a Letter of Intent (“LOI”) with Arizona Agropecuaria Ltda. Filial 2 of Brazil (“Arizona”).
Gensource and Arizona have signed an LOI that provides a framework for the creation of a vertically integrated organization in the potash fertilizer industry – meaning a direct business connection between the producer of potash in Saskatchewan and the end user of the fertilizer. This direct connection means that a potash mine can be optimized to produce specific product for a specific market without the uncertainties of selling the product after it is produced. The LOI is subject to approval by Gensource’s and Arizona’s respective boards of directors.
Gensource’s business plan clearly identifies “Access to Market”, or vertical integration, as a requirement to enter the potash industry, and the signing of this LOI supports that requirement.
“Gensource is excited to have found a market partner with the forward looking vision of Arizona”, commented Mike Ferguson, President & CEO of Gensource, “Gensource believes that, to be a new producer in the potash market, a coordinated partnership from the mine through to the end market is required. Arizona’s business outlook echoes Gensource’s, making the two companies highly compatible. In the end, our shared goal is to deliver independently produced fertilizer to the agricultural end users at competitive prices.”
Celso Cravinhos, Executive Director of Arizona Agropecuaria, is quoted as saying “…Arizona Agro has a business model that makes a joint venture, or other structure, very attractive and unique to our customers, the buyers, in a rather large market. This concept virtually assures our success as a supplier. The fact that Brazil is one of the biggest agricultural producing countries in the world and, as such, one of the largest consumers of potash - despite a very limited local production – should help to convey the importance of this joint effort. Gensource has a clear focus on creating a vertically integrated organization as a first step to the development of a new potash mine in Saskatchewan. We see this as a creative approach that will be better than focusing simply on a new mine in isolation. We look forward to beginning work on this exciting effort”
Arizona Agropecuaria, LTDA is an established private Brazilian company, operating an agricultural business from Sao Felix do Araguaria, Mato Grosso, Brazil. The company principals have over 50 years of experience in agribusiness representing a large agricultural land base in this booming agricultural region. Arizona Agro has developed a unique marketing approach, which will enable its clients to purchase potash directly from its strategic supply arrangement with Gensource, providing advantages compared to purchasing the product through the conventional distribution system. We believe the combination of strong marketing capabilities and the ability to secure the product will result in a most successful business venture.
Gensource is based in Saskatoon, Saskatchewan and is focused on developing potash projects in Saskatchewan, but doing so with a strong link to the end-user market for potash. Gensource’s President & CEO, Mike Ferguson P.Eng., has assembled a management team with direct and specific experience in Saskatchewan potash development. Gensource’s Advisory Board comprises globally-recognized experts on the various aspects of potash drilling, mining and processing technologies and international potash and business development expertise and experience. Gensource believes its technical expertise will allow it to develop a smaller scale, quicker-to-market and much more easily funded project than those that have been contemplated to-date in the potash industry.
For further information please contact:
Gensource Potash Corporation:
Mike Ferguson, President & CEO
Telephone: (306) 974-6414
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain of the statements and information in this news release constitute “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, are forward-looking INFORMATION. ThIS forward-looking information relateS to, among other things: the SATISFACTORY COMPLETION OF DUE DILIGENCE BY RAYMOND JAMES: THE ISSUANCE OF COMMON SHARES OF THE COMPANY TO RAYMOND JAMES; the ability of GENCOURCE AND CPC to providing the documents, reports and information required by the TSX-V in connection with the Transaction; and lifting of the current trading halt on the company’s shares by the tsx-v.
This forward-looking information reflects management’s current expectations with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to risks and uncertainties. These assumptions include: conclusion of satisfactory due diligence by Gensource, CPC and Raymond James; the preparation of technical reports and valualtions on properties of CPC that are satisfactory to the TSX-V; the preparation of a sponsorship report BY RAYMOND JAMES that is satisfactory to the TSX-V; the completion of definitive agreements relating to the Transaction; AND the Approval of the transaction by the TSX-V and Gensource’s shareholders. Many factors, both known and unknown, could cause actual results or future events to be materially different from the results or events that are expressed or implied by the forward-looking INFORMATION contained in this News Release. The Company does not intend, and does not assume, any obligation to update this forward-looking information should circumstances or management's expectations, assumptions or opinions change, except as required by law.
Source: Gensource Potash Corp.
Release ID: 36393