Gensource Potash Corporation has completed a major deal, bringing it one step closer to being Saskatchewan’s next potash producer.
The Saskatchewan-based company has made a binding take or pay Off agreement with Yancoal Canada Resources and awaits regulatory approval on the acquisition of property in the Craik-Elbow area.
Gensource calls it the Vanguard project.
The company is promising a cleaner and cheaper process, with no salt brought to the surface and the use of underground water supplies.
The company is hoping to produce 250 thousand tons a year and says Yancoal, which is working on its own potash project near Southey, has agreed to become Gensource’s first buyer.
President Mike Ferguson says Yancoal has agreed to take all the production from the first unit for at least five years.
The company recently raised more than three million dollars to extend development of its Vanguard project.