RE:NEWS
Karnalyte has working capital of $8.8-million at Q2 end
2017-08-10 20:18 ET - News Release
Mr. W. Todd Rowan reports
KARNALYTE RESOURCES INC. ANNOUNCES SECOND QUARTER 2017 RESULTS AND PROVIDES OPERATIONS UPDATE
Karnalyte Resources Inc. has filed condensed unaudited interim financial statements and management's discussion and analysis for the six months ended June 30, 2017. The financial results of the Second Quarter are as follows:
- A decrease in general and administrative expenses of $2,768,000 from the comparative 2016 amount;
- A decrease in cash since year-end of $7,640,000 as at June 30, 2017;
- An increase in long-term investment since year-end of $4,864,000 as at June 30, 2017
- An increase in trade and other payables liabilities of $440,000 since year end to June 30, 2017.
As at June 30, 2017, the Company had net working capital of $8.8 million compared to $20.5 million at June 30, 2016, including $9.1 million and $21.8 million, respectively, in cash. Karnalyte's Second Quarter 2017 Financial Statements and MD&A are available at www.sedar.com.
"The second quarter of 2017 has marked a very important period in the history of Karnalyte Resources Inc. At Karnalyte's May 5, 2017 annual general meeting, the shareholders elected four new directors to the board, all long-time shareholders of the Company. The directors are committed to Karnalyte and its success and are refocusing Karnalyte on its vision and mission to become a world class producer of high quality, low sodium potash." said Karnalyte's interim Chief Executive Officer, W. Todd Rowan.
OPERATIONS UPDATE
In order to conclude the work done during the optimization program in 2016 (the "Optimization Program"), the Board has approved a budget of $330,000 to perform the following activities at the Wynyard Project site:
- Cavern Testing - In order to gain an understanding of the final shape and temperature of the cavern, sonar and temperature logs are being taken at the cavern site. These logs will be delivered to the Company's consultant, ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH for analysis and a final update to their report on the Optimization Program.
- Magnesium Testing - concentrated MgCl2 brine was extracted from the Belle Plaine test cavern and this brine is now being tested in order to explore the potential of extracting and producing high purity 99% plus Magnesium Compounds. Karnalyte's team will also perform an evaluation of the potential markets for Basic Magnesium Carbonate (BMC) and MgO.
- Decommissioning 2016 cavern testing site - Karnalyte's team is decommissioning the site of the Optimization Program in accordance with the requirements of the Government of Saskatchewan. This will also further prepare the site for project construction.
- Disposal Well Temperature Log - To fulfill a condition of the licence for the disposal well, a routine temperature log will be carried out to ensure that the continued integrity of the well is being maintained.