Business
Gensource Announces Signing of Asset Purchase Agreement and Off Take Term Sheet
Gensource Announces Signing of Asset Purchase Agreement and Off Take Term Sheet Ge...
About this update from Gensource Potash Corp.
[{"type":"text","content":"\n\n\n\nGensource Announces Signing of Asset Purchase Agreement and Off Take Term Sheet\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nGensource Announces Signing of Asset Purchase Agreement and Off Take Term Sheet\nCanada NewsWire\nSASKATOON, SK, April 6, 2016\n\n\n\nSASKATOON, SK, April 6, 2016 /CNW/ -Gensource Potash Corporation (\"Gensource\" or the \"Company\") (TSX.V: GSP) is pleased to announce that it has entered into a definitive Asset Purchase Agreement (\"APA\") which includes an off-take term sheet (\"Term Sheet\") for the sale of potash dated effective today. Collectively, these transactions offer Gensource the opportunity to advance its business plan of becoming a future potash producer in Saskatchewan. The agreement is between Gensource and Yancoal Canada Resources Co. Ltd. (\"YCR\").\n\nThe APA defines the terms for the purchase by Gensource of two potash exploration permits (\"Permit\" or \"Permits\") conditional upon their conversion into mineral production leases (\"Lease\" or \"Leases\") and also contains a Term Sheet that defines key terms for the future sale of potash product from the proposed facility. Key terms of the transaction include a purchase price of $2,480,000, payable as two installments: (i) $1,240,000 in cash at closing within 30 days of the effective date of the APA; and, (ii) a convertible debenture to YCR in the principal amount of $1,240,000 that is due on the later of 90 days of the effective date of the APA and the close of the transaction, payable in cash or convertible to shares in Gensource if sufficient funds are not raised. The shares will be issued at an exercise price equal to the 20 day VWAP prior to the maturity date. Gensource will require a financing to close, which will be completed as a private placement on terms to be announced. Gensource has agreed to pay approximately $300,000 for the Lease conversion costs, which it understands may be refunded if the permits are not converted to leases. The transaction is subject to regulatory approval.  \n\nGensource has been clear in previous news releases t...