In a news release dated 22 May 2019, Gensource announced that it had completed a non-binding memorandum of understanding with a large and well-respected international fertilizer manufacturing and distribution company for the sale of 100% of the production from Tugaske. Development of the Tugaske Project has since progressed significantly and Gensource is now pleased to formally announce HELM AG and its North American subsidiary, HELM Fertilizer Corp (together, HELM) as its offtake partner for the Tugaske Project.
“We are very happy to announce our partnership with HELM as Tugaske’s off-taker,” commented Mike Ferguson, President & CEO of Gensource. “Helm brings a significant existing US customer base as well as substantial and growing infrastructure – terminals and storage facilities – within the US agri-business supply chain. Tugaske represents another strategic venture for HELM that is similar to previous successes it has enjoyed. It is clear to us that HELM is here for the long term and is acting strategically to support and grow its fertilizer business, and Gensource is proud to be part of that effort.”
HELM and Gensource are currently finalising the definitive offtake agreement for Tugaske under which HELM will purchase 100% of the production from the Project for 10 years, renewable thereafter. The offtake agreement is expected to be complete in 1Q20 this year.
Regarding project status, the Tugaske Project is in the detailed project finance stage with a goal to reach financial commitments in late spring 2020 and have construction commence thereafter. With the debt financing due diligence activities progressing and the discussions on equity also progressing, Gensource remains focused on bringing these two critical efforts to a successful conclusion, thereby allowing the Project to proceed to construction.