Canada Gensource Potash enters new business relationship with Nekaneet First Nation

HOUSTON (ICIS)–Gensource Potash Corporation announced that it has entered into a new business relationship with Nekaneet First Nation, who have made a direct investment into the Canadian producer.

The company said the relationship encompasses equity ownership in Gensource and therefore a direct interest in the development of their potash projects in Saskatchewan, which are being designed to be environmentally leading and scalable potash production systems.

“Our goal is to implement a Saskatchewan project that will bring multigenerational benefits to our shareholders and the local community. Gensource’s Tugaske potash project is located on Treaty 4, encompassing the lands of the Cree, Saulteaux, Dakota, Nakota and Lakota, and homeland to the Metis Nation, and lands included in the traditional territory of Nekaneet First Nation,” said Mike Ferguson, Gensource Potash president and CEO.

“We are all part of this treaty and we must take our corporate responsibility seriously to create real change through reconciliation. Nekaneet First Nation is a leader in so many ways, and it is that leadership sensibility that aligns so well with Gensource and its goals.”

Currently, the company is focused on the Tugaske project in Saskatchewan where this past June, plans were announced to double the overall potash production capacity from 250,000 tonnes/year to 500,000 tonnes/year under a second phase by adding another module at the project.

In an update on Tugaske, Gensource said that bridge engineering work has been undertaken to investigate the impacts of global cost escalation, supply chain issues and review redundancies, design factors and overall plant life design basis. It is also responsible for bringing an updated construction plan including capital and operating cost estimates.

The company said following that effort, there were significant opportunities identified where it can improve the overall financial and operational performance of the project.

Specific areas being investigated are process and technology improvements which have the potential to yield significant optimisations and cost savings which are now being pursued.

Gensource said project plans for the coming months include completing engineering followed by actual test work of the potential changes to confirm process workability and equipment function.

Further, the company is looking into the feasibility of drilling the first cavern at Tugaske as early as possible in the pre-construction phase, in order to confirm the cavern placement, layout and re-confirm the design parameters.