Canadian Mining Journal

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POTASH: Karnalyte breaks off financing talks for mine



SASKATCHEWAN – Things were looking up for Karnalyte Resources of Calgary last March when it announced it was in talks to fund a new in situ potash mine near Wynyard. Today the company said that the financing talks have broken down, and would-be partner Gujarat State Fertilizers and Chemicals has ceased negotiations with Karnalyte.

The parties were unable to reach an agreement on certain fundamental terms, including to governance  matters and the terms upon which Karnalyte’s secondary minerals such as magnesium will be developed in a separate entity.

Karnalyte noted in a release that the parties have nt formally terminated the framework agreement dated Feb. 24, 2016, but the agreement will expire at the end of September. (www.Karnalyte.com).