Junior miner Gensource Potash Corp., Saskatoon, said Nov. 29 that it has signed a non-binding Memorandum of Understanding with an Indian company, Essel Group Middle East Limited (EGME) to form a joint venture company that will advance one of Gensource’s small scale potash projects in Saskatchewan through to production.
EGME will provide business and logistic expertise to the jv and will provide financing in two stages – first, to complete the current feasibility study, and second, to finance the construction of the project. Ultimately, when the construction financing has been committed, the JV will be owned 70 percent by EGME and percent by Gensource.
According to Gensource, EGME is a part of Essel Group India, a company operating in many sectors, including media, entertainment, infrastructure, and education. It said EGME is pursuing growth by securing strategic resource investments across the globe and by diversifying into the hydrocarbon and mineral resource sectors.