The offering will consist of the sale of up to 23 076 924 common shares of Gensource at $0.065 per common share. The non-brokered financing is reportedly subject to an over-allotment option, enabling the company to issue an additional 3 461 538 common shares.
Tranche one of the offering consisted of the sale of 10 360 768 common shares of the company at $0.065 per common share, for gross proceeds of $673 450.00. Gensource claims that tranche two of the offering is expected to close on or before 15 December 2017.
In addition to this, in the statement, Gensource claims that it has paid commissions on the offering to certain finders. The commissions paid to the finders consisted of cash payments of $34 580.00 and the issuance to the finders of 532 000 agent’s warrants exercisable into common shares at $0.065 per agent’s warrant for an 18-month period after the closing date.
Gensource is planning to use the proceeds from the offering for general working capital purposes as it looks to complete current negotiations with market partners its first scalable and environmentally responsible potash operation, as well as to continue with resource definition work to support a second project within the Vanguard area.
The securities issued pursuant to the offering are subject to a four month and one day statutory hold period.
The President and CEO of Gensource, Mike Ferguson, said: “We are pleased to have closed the first tranche of the private placement and are moving to the second close on or about 15 December 2017. Gensource continues to drive towards the business structure with our market partners that facilitate moving the first of our scalable and environmentally friendly projects to production.”