RE:finanicals--------
Karnalyte Resources Inc
Symbol C : KRN
Shares Issued 27,479,010
Close 2013-08-08 C$ 2.41
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Karnalyte loses $1.67-million in Q2
2013-08-09 18:20 ET - News Release
Mr. Robin Phinney reports
KARNALYTE RESOURCES INC. ANNOUNCES SECOND QUARTER 2013 RESULTS; MEETS CONDITION OF ENVIRONMENTAL IMPACT STATEMENT APPROVAL
Karnalyte Resources Inc. has released its financial results and operational highlights for the quarter ended June 30, 2013. The Corporation also announced that the Saskatchewan Ministry of Environment ("MOE") has indicated that it is satisfied with one of the conditions of the Wynyard Carnallite Project's Environmental Impact Statement ("EIS") approval dated February 7, 2013.
"During the second quarter, Karnalyte made progress towards securing funds for the construction and commissioning of the Wynyard Carnallite Project by engaging BNP Paribas and Natixis as lead arrangers for up to US$300 million in project debt," said Robin Phinney, President and CEO of Karnalyte. "Subsequent to the end of the quarter, we received notice that the Saskatchewan MOE is satisfied with the results of the brine disposal injectivity test mentioned in the EIS approval we received earlier this year."
"Uralkali's recent announcement to withdraw from its sales partnership with Belarusian Potash may change global potash markets, however, based on global potash demand fundamentals and the barriers to entry into the North American market faced by international potash companies, we don't believe this development will have as extreme of an impact on price as predicted," added Phinney. "As such, Karnalyte will look at various strategies and alternatives while continuing to assess the implications of this development."
Karnalyte also confirms that it is not aware of any material undisclosed information that may be contributing to the recent decrease in market price and level of trading activity of its shares.
As at June 30, 2013, the Company had net working capital of $55,654,143 compared to $30,504,468 at June 30, 2012, including $56,224,956 and $31,472,099, respectively, in cash. Karnalyte's Second Quarter 2013 Financial Statements and Management's Discussion and Analysis (MD&A) are available at www.sedar.com
Key Project Development Highlights
Since April 1, 2013, Karnalyte has achieved the following key milestones in the development of the Wynyard Carnallite Project (the "Project"):
Engaged BNP Paribas and Natixis, New York Branch, on an exclusive basis,
to act as lead arrangers (the "Lead Arrangers") for a senior secured
project finance facility of up to US$300 million;
Selected Whiting Equipment Canada Inc. ("Whiting") as its major
equipment supplier and worked with Whiting to advance detailed
engineering activities related to major equipment component
specifications;
Continued detailed engineering to advance the underground cavern design
and planning;
Continued site preparation activities at the future production facility
site;
Received notice that the Saskatchewan MOE is satisfied with a condition
of EIS approval, as the results of the recently completed injection
test, have confirmed there is sufficient capacity for brine disposal;
and
Prepared to drill another groundwater source well, which will be tested
to support water yield results from the existing groundwater well.
KARNALYTE RESOURCES INC.