SOURCE: Karnalyte Resources Inc.
February 02, 2016 14:30 ET
CALGARY, AB–(Marketwired – February 02, 2016) –
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Karnalyte Resources Inc. (“Karnalyte” or the “Company”) (TSX: KRN) comments on recent trading activity in its common shares that may stem from market rumours by acknowledging that Karnalyte’s previously disclosed negotiations with Gujarat State Fertilizers and Chemicals Limited to finance the construction of Phase 1 of Karnalyte’s 625,000 tpy Potash production facility at Wynyard, Saskatchewan are ongoing. There is no assurance that any transaction will be agreed upon. Until such time as it is appropriate to make a public announcement on any potential transaction, Karnalyte does not intend to make any further comment on this matter. Any announcements regarding a potential transaction will be disclosed in accordance with all applicable legal and regulatory requirements.
Karnalyte is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products. Karnalyte intends to develop and extract a carnallite-sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impact. Using a staged approached to potash plant construction, the Company plans to operate a solution mining facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year. Karnalyte owns a 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan, comprising a total of 85,126 acres.
Karnalyte’s common shares are traded on the Toronto Stock Exchange (TSX) under the symbol KRN.