Gensource Potash Corp (CVE:GSP), a Saskatchewan potash producer, has signed an agreement with China to develop potash projects in the province, Global News reports.
"Our goal is to deliver Saskatchewan potash under long term supply contracts to markets where we have solid long term relationships," Mike Ferguson, Gensource CEO told Global News. "China is a vital market player going forward."
Details of the agreement have not yet been released.
In June Gensource and Canada Potash Corp (CPC) executed a binding term sheet in which the companies agreed to combine their resources to develop potash properties in Saskatchewan. As part of the agreement, CPC consented to introduce Gensource to its contacts in China.
Saskatchewan contains almost two-thirds of the world's recoverable potash but the province has been trying to attract foreign investors to tap these resources.
Saskatoon Mayor Don Atchinson traveled to China in April to try and promote the city as an investment opportunity. Potash is the only commodity mined in Saskatoon but the province is a world leader in potash and uranium sectors and holds about 55% of the global potash resources.
Creative Commons image by: Just a Prairie Boy