POTASH: Karnalyte secures phase one financing

SASKATCHEWAN – Calgary-based Karnalyte Resources has secured an agreement in principle with Gujarat State Fertilizers and Chemicals for US$700 million with which to build phase one of an in situ potash mine at Wynyard. The deal includes spinning-out Karnalyte’s secondary mineral assets and unexplored lands into one or more separate entities. GSFC is one of India’s largest fertilizer and chemical makers. It made an initial investment of US$44.7 million in 2013 to secure a 19.9% equity stake in Karnalyte. Karnalyte plans to produce 625,000 tonnes of high grade granular potash per year with the completion of phase one. Output will increase by 750,000 t/y in phase two, and reach 2.125 million t/y when phase three is completed. GSFC has agreed to take 350,000 t/y of product for 20 years when phase one comes on stream. It has an option to increase its offtake by 250,000 t/y to 600,000 t/y when production reaches phase two. Details of the financing and spin-out agreements will be available shortly in the March 14, 2016, news release at www.Karnalyte.com.