Gensource Potash Corp. said Oct. 15 that it closed the US$6.0 million royalty sale on the Tugaske potash project, which will be developed within the company's Vanguard property in Saskatchewan.

The 2% gross revenue royalty was granted to a strategic investor and a project off-taker, whom Gensource struck a deal with to develop the project.

In addition, the company closed a private placement of 11,230,769 shares at 13 Canadian cents apiece to raise C$1.5 million in gross proceeds.

Gensource said the total gross proceeds of US$7.1 million from the two transactions will be used to advance the project, provide working capital and complete a senior debt due diligence process for project financing, which is targeted for closing in early 2020.