Junior producer Gensource Potash Corp., Saskatoon, reported on April 13 that it has reached a binding agreement to acquire 100 percent of the issued and outstanding shares of Innovare Technologies Ltd., London, a privately-held developer of patented selective solution mining and brine processing technology for the recovery of potash and other soluble minerals. The closing of the transaction, which is expected in second-quarter 2022, values Innovare at US$11.5 million.
“Gensource’s acquisition of Innovare’s shares and the integration of Innovare’s business with our own will provide Gensource with exclusive use and control of Innovare’s unique and highly sought-after selective solution mining and brine processing technology for potash development, without which the environmental benefits of modern potash production would be extremely challenging to replicate,” said Mike Ferguson, Gensource President & CEO. “The acquisition will place the company in a strong competitive position in an industry dominated by producing facilities based on conventional 1950s and older technology.”
The acquisition of Innovare’s shares will occur by way of a reorganization, whereby Innovare’s existing shareholders will transfer the shares they hold in Innovare to Gensource in exchange for new common shares of Gensource. Following completion of the reorganization, Innovare will exist as a wholly-owned subsidiary of Gensource, and Innovare’s business will be integrated with and controlled by Gensource.
Gensource has worked with Innovare over the last six years in the development of Gensource’s modular potash production module. The company’s potash project located near Tugaske, Sask., will be the first project to implement a Gensource module.
The former owners of Innovare include the corporate vehicles of the three principals, being Artisan Consulting Services Ltd, McEwan Consulting Chemical Engineering, Inc., and Ristra Consulting Inc. Gensource said the three have a combined 100+ years of industry-specific experience and have successfully developed potash projects in Saskatchewan, including being part of what is now known as K+S AG’s Bethune Mine, north of Moose Jaw, Sask.