Essel Group ME ("EGME or the "Company") is pleased to announce that both the Company and its joint venture partner, Gensource Potash Corporation ("Gensource"), have appointed directors to their joint venture Vanguard Potash Corp. ("Vanguard").
The directors of Vanguard are:
Pursuant to the Shareholder Agreement for Vanguard (the "Agreement"), Gensource and EGME are entitled to appoint a total of five directors to Vanguard: two nominated by Gensource and three nominated by EGME.
The directors of Vanguard will now appoint management and begin detailed planning to complete the development, financing and construction of the Vanguard One project.
EGME and Gensource announced a memorandum of understanding to create a joint venture company on November 29, 2016, and announced execution of the Agreement on April 4, 2017.
Vanguard will own, construct and operate the Vanguard One project, which will be located on a portion of Gensource's KL 245 subsurface mineral lease. Pursuant to the Agreement, the parties plan to expand the Vanguard One project from its initial 250,000 t/year production to a target production rate of 1.0 M t/year. Gensource will provide Vanguard with the lease, engineering and geology completed to the end of 2016, as well as the project development expertise and unique mining and processing technology. EGME will support Vanguard with marketing the potash end-product, international logistics expertise and capital financing. Vanguard now has a clear path to developing Vanguard One, a project that will have major economic advantages over conventional potash projects, as well as a massively reduced environmental and community footprint.
As previously announced, the feasibility study for Vanguard One will be completed in the second quarter of this year, with further details of the project's economic and technical progress to be provided.
EGME is a diversified conglomerate operating primarily in the Europe, Middle East, Africa and Asia pacific region.
EGME is part of Essel Group, the Indian multinational conglomerate operating in a broad spectrum of industries including media, packaging, infrastructure and technology. Building on Essel Group's 90 year history of developing and promoting businesses, EGME is leading the Group's regional expansion and currently operates subsidiary businesses in the natural resources, energy, industrial supply and logistics, education and financial services sectors. For further information, please visit www.esselgroupme.com
Gensource is based in Saskatoon, Saskatchewan and is focused on developing the next Potash production facility in that province. Gensource's President and CEO, Mike Ferguson, P.Eng., has assembled a management and technical team with direct and specific expertise and experience in potash development in Saskatchewan.
Gensource operates under a business plan that has two key components – vertical integration with the market to ensure that all production capacity built is directed to a specific market, eliminating market-side risk; and, technical innovation which will allow for a small and economic potash production facility, the output of which can then be directed to a single, specific market.