Gensource Potash Corp. (TSXV:GSP) announced that it has terminated a binding term sheet with Canada Potash Corp. as a result of “technical challenges, difficult market conditions and a desire by Gensource to resume trading as soon as possible.” The agreement had contemplated a reverse takeover.
Mike Ferguson, CEO of Gensource, commented:
We remain committed to our business model, which is to assemble the partnerships required to support a potash development with three key pillars: Access to Market; Access to Financing; and Execution Expertise. To that end, we have assembled an outstanding management and technical team within Gensource.
That provides the ‘Execution Expertise’ pillar. Our on-going working relationship with CPC and the signed early stage marketing agreements with our five distribution partners in China represents an enormous step towards the ‘Access to Market’ pillar. Gensource and CPC both view the potash industry in a similar way – an industry with great growth potential, and some unique challenges which require similarly unique solutions and vision. Gensource will continue to advance its business plan, now with two pillars in place.