Gensource Potash Corp., Saskatoon, said on Feb. 14 that it, along with Helm AG and Michael Ferguson, Gensource President and CEO, have entered into a mutual release and settlement agreement dated Feb. 11, 2022, with Frank Eberhardt, Carl F. Peters, GmbH & Co., and 11664735 Canada Ltd. with regards to the statement of claim filed by the plaintiffs last summer (GM June 28, 2021).
“We are pleased to have settled this matter with the plaintiffs, which removes a distraction from the Gensource team as we look to move our Tugaske potash project forward into construction,” said Ferguson.
According to Gensource, the claim alleged, among other things, that Gensource and Helm wrongfully excluded Eberhardt from investing in the Tugaske Project and sought to confer upon the plaintiffs the right to invest in and be part of the Tugaske Project.
In late 2020, Gensource reported that it had ceased negotiations with Eberhardt when it became clear that the parties were not able to agree on the terms of the key required agreements, namely the offtake agreement for the Tugaske Project and the shareholder agreement that would govern the Special Purpose Vehicle (SPV).
Since that time, Helm and Gensource have finalized and executed the offtake agreement and have agreed on substantially all the terms of the shareholder agreement for the SPV, pending final equity capital structure of the SPV (GM May 14, 2021).