You do not sign agreements like this unless you know something is in the pipeline!!
CALGARY, Sept. 6, 2012 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has entered into an Engineering, Procurement and Construction Management ("EPCM") Services Agreement (the "Agreement") with Foster WheelerCanada Limited ("FWCL"), whereby FWCL will provide EPCM services for the Wynyard Carnallite Project(the "Project"). The proposed Project involves the construction of a facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year.
"Karnalyte is proceeding with the Wynyard Carnallite Project and is looking forward to continuing our collaboration with Foster Wheeler, a world-renowned engineering firm," said Robin Phinney, President and CEO of Karnalyte Resources Inc. "Foster Wheeler will help us achieve the Project's next major milestones, which include beginning detailed engineering work, followed by preparation of the site where Karnalyte plans to build its potash production facility."
Under the terms of the Agreement, the services to be provided by FWCL include:
- Engineering
- Procurement
- Construction management
- Commissioning support
Foster Wheeler will also coordinate with ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") of Erfurt Germany which will provide engineering, cavern development, mine plan and commissioning services for the solution mining of the project. Karnalyte expects to commence the site preparation and detailed engineering work in September 2012, and continues to pursue financing opportunities to fund further advancement of the Project.