Junior miner Gensource Potash Corp., Saskatoon, announced on Sept. 23 that it has received binding commitment letters from its two mandated joint lead debt arrangers, KfW IPEX-Bank and Societe Generale, to provide a senior secured debt facility for a total of up to $C280 million. Each arranger will underwrite one-half of the amount. The money is intended to fund, in part, the construction and ramp up of the company’s Tugaske potash development project in Saskatchewan.
As previously announced (GM Sept. 3, p. 27), a Special Purpose Vehicle (SPV) has been incorporated in Saskatchewan for the Tugaske Project and named KClean Potash Corp. It will finance and ultimately construct and own the 250,000 mt/y Tugaske Project. As the Tugaske’s offtaker, Helm AG, Germany, has committed to invest $C50 million to own 33 percent of KClean. Gensource is anticipated to own the remaining 67 percent through paid-in-capital and an equity investment in KClean.