Junior miner Gensource Potash Corp. on Dec. 1 announced a proposed best efforts, nonbrokered private placement for gross proceeds of up to C$6 million. Some 20 million units will be offered at C$0.15 per unit for proceeds of up to $3 million, while 15 million common shares would be sold as “flow-through shares” at $0.20 per share for gross proceeds of $3 million.
Gensource said that the unit sale proceeds will go to advance the Tugaske Project, specifically to continue with detailed engineering and procurement activities, complete well pad leasing and drilling planning, obtain pipeline rights of way, complete the financing process of the project, and for general working capital purposes. Use of proceeds from the sale of the flow-through shares will be used to further expand resource definition, with the aim of developing a second project within the Vanguard Area.
In related news, Gensource said on Nov. 28 that its plan to acquire Innovare Technologies Ltd. (GM April 15, p. 28) has formally expired, as it was contingent on the receipt of full project financing by Aug. 31, 2022. However, Gensource said all the parties remain interested and ready to proceed with the transaction once project financing is complete.
Gensource had planned to buy 100% of the London-based privately-held developer of patented selective solution mining and brine processing technology in a deal that valued Innovare at US$11.5 million.