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Karnalyte Resources Inc T.KRN

Alternate Symbol(s):  KRLTF

Karnalyte Resources Inc. is a Canada-based development stage company. The Company is engaged in the exploration and development of its property and possible construction of a production facility and development of a potash mine. The property is situated in Saskatchewan, south of Wynyard and contains a dominant zone of potash and magnesium minerals. Its Wynyard Potash Project is a Carnallite/Sylvinite solution mining project in central Saskatchewan. It has a 100% interest in KLSA 010, KL 247A, and KL 246 mineral leases comprising approximately 367 square kilometers (km2) (90,766 acres) of mineral rights. It also owns around 4,100 acres of surface land. The project is located approximately 190 km east of Saskatoon, SK, or 176 km north of Regina, SK. It is also exploring the development of the Proteos Nitrogen Project. The Proteos Nitrogen Project is an advanced stage development project consisting of a proposed small-scale nitrogen fertilizer plant to be located in Central Saskatchewan.


TSX:KRN - Post by User

Comment by mdjbrownon Nov 25, 2020 9:30am
230 Views
Post# 31968599

RE:Farmer Logic

RE:Farmer LogicErnest, the bottom line here is really this.

India is reliant on other nations for potash, and did something about it as they have now successfully secured decades worth of potash, and once / when potash prices get out of hand, you can bet your last dollar a mine will be built.

That might be decades from now, but none the less, India now has it's very own secure source of potash, and they did it right under the noses of the Saskatchewan government.

I always hear the logistics argument about costs getting the finished product to India, and yet that problem is easily solved by selling the high grade potash here in North America, and using the proceeds to buy lower grade potash from closer sources to India.  

Many along the way were fooled including myself by promises that were not kept, but the writing has always been on the wall as to GSFC's end game.  

In 2015, GSFC made it crystal clear in a press release in India that they wanted management control and 51% voting rights of Karnalyte Resources.

"So after acquisition of additional 15-20 per cent stake, our combined holding will be beyond 51 per cent and we will take management control of Karnalyte"

"This acquisition will ensure secured supply of good quality potash for Indian consumers"


https://www.thehindubusinessline.com/companies/gsfc-plans-to-take-management-control-of-canadian-potash-miner-karnalyte/article7796550.ece

They expected to pay upwards of another $15 million for that control, but instead were handed it on a silver platter for $1.7 million through the rights offering, once they realized 51% was not necessary to control the company based on the share structure.

Worse, the very group of common shareholders that were elected in 2017 to protect shareholders interests against this happening, gave the farm away, and here we are.

Now what happens, as each year liabilities increase while the corporate treasury decreases. 

Karnalyte's only asset has already been written off to salvage, so what happens when the  corporations liabilities outweigh cash and assets?

Oh ya, GSFC has a surviving clause for just that, and it aint Santa Clause!





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