Gensource Potash Corporation (TSXV: GSP) became the latest firm to up its potash capacity game. The firm announced on Tuesday a commitment with a strategic investor to grow the annual potash production to 500,000 tonnes from 250,000 tonnes at its project located near Tugaske, Saskatchewan.
Together with investor and offtake partner, HELM AG and subsidiary HELM Fertilizers, the firm is planning to add a second module to its ongoing development of the Tugaske project. The second phase of the project is expected to double its anticipated capacity to half a million potash tonners.
“The need for innovative solutions to bring new production to market is imperative, and with HELM’s continuing support, we are one step closer to bringing the Tugaske Project into production,” said CEO Mike Ferguson.
In addition, HELM is also committing a US$12.5 million contingency fund for the Tugaske project, as required by the bank syndicate handling the firm’s debt financing with Germany-based chemicals firm.
While no details have been shared on the phase two timeline, the firm said it would be “significantly accretive to the overall returns” for the project.
Gensource last traded at $0.19 on the TSX Venture, then spiked 8% when the markets opened.
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