This feature focuses on the potash industry, one of Canada’s strongest, with word Wednesday morning that Saskatoon-based Gensource Potash Corporation (TSX-Venture:GSP) has entered into non-binding Memoranda of Understanding (MOU) to form a joint venture company (“JVCo”) to develop the Maverick Project within the Vanguard Area.
JVCo will build, own and operate the potash production facility. The Vanguard Area comprises approximately 72,000 acres of crown mineral lease area of known and prospective potash minerals within leases KL-244 and KL-245. The area is named “Vanguard” to underscore the leading-edge, industry-changing approach to potash production the Company is developing. The Maverick project is being developed alongside the Company’s other project, Vanguard One, within the Vanguard Area.
Said CEO Mike Ferguson, “The fact that Maverick has received formal interest on offtake as well as equity investment as a ‘bundle’ is significant; significant not only because it underscores the commitment to the project by Maverick’s offtaker and the third-party investor, but also because of the accelerating effect it will have on the completion of the senior financing package for Maverick."
Gensource shares approached noon ET Wednesday up a penny, or 10%, to 11 cents, on 191,000