RE: Equity From Clarus report (copied and link from someone else's post)
This agreement allows Karnalyte to continue building momentum with a goal of financing the project this quarter and commencing construction this spring. Assuming the project finalizes debt commitments for half of the approximate $600 million CAPEX requirement leaves a balance of $300 million equity which plausibly could largely be financed from cash ($29 million), this GSFC investment ($45 million), GSFC maintaining its pro-rata interest (say $45 million), possibly a second strategic investor (say $45 million) and existing leading institutional holders leaving a balance of less than $100 million to be raised from additional sources.
We reiterate our bullish stance on KRN which we believe to be the world’s most attractive potash play to have surpassed the BFS stage. The project boasts exceptional merits including a prime location (Saskatchewan), a high quality potash product, a low cost profile (most notably low CAPEX) and a high after-tax IRR (21.4%). The project has material upside beyond this study including substantial optimization (potential to materially reduce OPEX) and co-product opportunities (a magnesium PFS shows a $262 million after-tax NPV = or $11/share).
Read more at https://www.stockhouse.com/bullboards/messagedetailthread.aspx?p=0&m=32008467&l=0&r=3&s=krn&t=list#CwAauuwdselij5r7.99