SASKATOON, SASKATCHEWAN--(Marketwire - Nov 30, 2012) - Alan Cruickshank, President and CEO of Gensource Capital Corporation (Gensource Capital) (TSX VENTURE:GSP), is pleased to announce the appointment of Mike Ferguson, P.Eng. as President and CEO of Gensource Potash Corporation (Gensource Potash), a wholly owned subsidiary of Gensource Capital.
Mike is a highly experienced engineer and project manager, with over 25 years in the Saskatchewan potash and uranium industries. Mike''s experience covers potash operations roles (both underground and on surface), design and engineering, engineering management, project management and general management. Most recently, Mike led the Potash One project team in developing the Legacy Project in Saskatchewan. Potash One was acquired by K+S AG in a friendly take-over in November 2010 and Mike worked with K+S Potash Canada in a transitional role until recently.
Alan Cruickshank commented "… we are very pleased to have attracted someone of Mike''s experience to lead the team at Gensource Potash. Our goal at Gensource is to build a partnership that is capable of putting the next potash project into production in Saskatchewan. This partnership must address: 1) market access, 2) financial capability and 3) technical know-how. The leadership of Mike Ferguson, his experience and contacts significantly strengthens Gensource''s ability to assemble this partnership".
Gensource Potash Corporation was created through the acquisition of Nexxt Potash Corp., a private potash development company headquartered in Saskatoon, SK. by Gensource Capital Corporation. Subsequent to this transaction Gensource Capital Corporation has moved its corporate headquarters to Saskatoon, Saskatchewan. The transaction creates a privately operated potash project development company, Gensource Potash, with access to the public markets through its parent company, Gensource Capital.
One of Nexxt Potash''s founders is Steve Halabura, P.Geo., FEC(Hon). Steve remains with Gensource Potash as Director of Geology as well as serving as Chairman of the Board of Directors of Gensource Potash Corporation.
Gensource Potash views the potash development process in Saskatchewan differently. Given the massive extent of the Prairie Evaporite Formation in the province, it is possible to show large potash resource numbers almost anywhere within the known Evaporite region. The real issue is to identify the right resource that is not only rich and economical to recover but is also supported by surface-drivers such as infrastructure (roads, rail, power, water, gas, etc.) and conducive surface hydrology and sub-surface hydrogeology so as to minimize both costs and environmental impacts or concerns.
Gensource Potash sees the key risks to new potash project development in Saskatchewan as:
- Access to the market. The global potash market is a very much a closed one. Success will depend on clear access to the market, including distribution and sales infrastructure.
- Financial capability. Since new potash development projects are very expensive, a new entrant must have a clear plan to finance its venture to be successful.
- Know-how. Knowing where the best resources exist within the Prairie Evaporite, where the surface-drivers of the project are optimized and understanding the environmental, regulatory and community engagement issues and requirements is critical to a successful project.
In support of the above, Gensource Potash has completed an internal assessment of potential potash lands that are suitable for solution mining and has identified at least six potential prospects. Currently Gensource Potash is pursuing the acquisition of freehold potash leases at two of the prospects and has developed plans for seismic and drilling programs that would define a prospective potash project, which the Company defines as a having potential minimum potash resource endowment of 100 million tonnes K2O (158 million tonnes KCl) in the "Indicated" resource category.
For more information on Gensource, visit our website at www.Gensource.ca.
The Corporation''s public documents may be accessed at www.sedar.com.
This news release contains forward-looking statements. These statements are based on certain factors and assumptions as set forth in this news release including expected growth, results of operations, performance and business prospects and opportunities. While the Corporation considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to results of exploration, project development, reclamation and capital costs of the companies in the merchant banking portfolios ("investee companies"), and the Corporation''s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for the minerals the investee companies expect to produce; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Corporation and investee companies. Additional risks and uncertainties can be found in our Management''s Discussion and Analysis and in filings with the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this news release and the Corporation disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.