The offering will consist of the sale of up to 24 million common shares of the company at CAN$0.125 per common share. The non-brokered financing is subject to an over-allotment option, enabling the company to issue a further 3.6 million common shares.
In the statement, Gensource claims that it is planning to use the proceeds from the sale for general working capital purposes, to complete the detailed financial arrangements with current offtake MoU partners, as well as third-party equity and debt providers to allow for the construction of the first potash module and to advance the level of definition of the resource in the KL 244/KL 245 area. The offering will reportedly take place by way of a private placement to qualified investors in such provinces of Canada as the company may designate, and otherwise in those jurisdictions where the offering can lawfully be made. The securities to be issued pursuant to the offering will be subject to a statutory fourth-month and one-day hold period from the closing date.
Gensource claims that it is expecting the offering to close on or around 31 May this year, subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange. In consideration for the their services, certain persons (each, a ‘finder’) may receive – from the corporation upon closing – a cash commission equal to 8% of the gross proceeds of the offering and compensation warrants to purchase common shares equal to 8% of the total number of common shares sold, exercisable for 18 months from the closing date at CAN$0.125 per common share.
The President and CEO of Gensource, Mike Ferguson, said: “We look forward to completing the financing, which will allow the company to be in a strong position as we complete offtake and project finance negotiations that will allow the first project to move into construction. Gensource is also cognizant of the need to stay ahead of the curve with respect to defining the next projects in the Vanguard area.”
Read the article online at: https://www.worldfertilizer.com/potash/04052018/gensource-announces-can3-million-non-brokered-private-placement/