From the Wires
Gensource Capital Announces Private Placement and Letter of Intent in Subsidiary Gensource Potash
By: Marketwired .
Jan. 18, 2013 03:28 PM
SASKATOON, SASKATCHEWAN -- (Marketwire) -- 01/18/13 -- Gensource Capital Corporation ("Gensource" or the "Company") (TSX VENTURE:GSP) announces it will be conducting a non-brokered private placement of units ("Units") at a price of $0.08 per Unit and flow-through units ("FT Units") at a price of $0.10 per FT Unit, for aggregate gross proceeds of up to $2,500,000 (the "Offering").
Each Unit will consist of one (1) common share and one half (1/2) of one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire an additional common share at a price of $0.12 for a period of eighteen (18) months.
Each FT Unit will consist of one (1) common share to be issued on a "flow-through" basis and one half (1/2) of one common share purchase warrant ("FT Warrant"). Each whole FT Warrant will entitle the holder to acquire an additional common share at a price of $0.14 for a period of eighteen (18) months.
The proceeds from the sale of FT Units will be used for exploration purposes. The net proceeds from the sale of Units will be used for exploration and general working capital purposes.
All securities issued in conjunction with the Offering will be subject to a four-month statutory hold period in Canada. The Company may pay finder's fees to certain finders consisting of a cash commission equal to up to 8% of the gross proceeds of the Offering, plus non-transferable compensation options to purchase that number of common shares of the Company equal to up to 8% of the total number of Units and FT Units sold pursuant to the Offering.
Gensource Potash Corp, a wholly owned subsidiary of Gensource Capital announces that they have signed a letter of intent with an international resource company with an interest in developing a potash project in Saskatchewan. The letter of intent is designed to provide confidentiality to advance further negotiations and is non-binding. The agreement is subject to approval by the respective boards of directors. This disclosure is for information purposes only and no assurances can be given that the parties will advance beyond these discussions.
Completion of the Offering is subject to approval of the TSX Venture Exchange.
About Gensource Capital Corporation
Gensource Capital Corporation is a merchant bank based in Saskatoon, Saskatchewan focused on developing resource opportunities. The primary project is a wholly subsidiary Gensource Potash Corporation also based in Saskatoon, Saskatchewan. Gensource Potash Corp. is led by Mike Ferguson P.Eng. President and CEO. Mr. Ferguson has assembled a world class management team with direct and specific interest in potash development.
This news release contains forward-looking statements, including statements regarding the completion of the Offering and the use of proceeds of the Offering. These statements are based on certain factors and assumptions, including expected growth, results of operations, performance and business prospects and opportunities. While the Company 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 Company'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 Company 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 Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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