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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. It is focused on two fertilizer products, potash and nitrogen, to be produced and manufactured in Saskatchewan. The Company owns the construction ready Wynyard Potash Project, with planned phase I production of 625,000 tonnes per year (TPY) of high-grade granular potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY. The Company is also exploring the development of the Proteos Nitrogen Project, which is a proposed small scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric tonnes per day (MTPD) of ammonia and approximately 1,200 MTPD of urea, and a target customer market of independent fertilizer wholesalers in Central Saskatchewan.


TSX:KRN - Post by User

Bullboard Posts
Comment by businessenseon Oct 15, 2014 12:29pm
188 Views
Post# 23029989

RE:RE:RE:RE:RE:RE:RE:RE:RE:On the magnesium project

RE:RE:RE:RE:RE:RE:RE:RE:RE:On the magnesium projectMJD - I am sure  that Sitting on the money is not why any of us invested.

They need an investor/partner to get the additonal money required. Starting the plant so they can generate income is what everyone wants to see. No one wants to invest in a company that does not generate revenue or unable to determine when that might be. Something that is reflected in the share price.

They are working the magnesium option, but again easier said than done and potash as it should be is the priority. Interested parties,  but no one has commited with any kind of tangible commitment or money for the magnesium. Even f they they said they could do it all with financing, it remains to be seen. No one lends money without some security and remains to be seen and need operating capital. 

Meanwhile, you have an important commitment to respect with GFSC. Changing focus when that is where a great deal of money and energy has been placed to now build a pilot plant diverts resources. Interest in the potash does not appear to be dead and working on. 

When you have revenues it is a lot easier. When you need money, it tends to be more restrictive and working at fullfillng ones commitment should be your primary objective. If someone comes along and says "I want all your magnesium and will take care of everything and pay you X "that would be wonderfull, but remember the brine has to be processed a certain way to extract both otherwise "are you wasting Potash? 

Given that Robin was initially looking for the magnesium (and I do not want to assume), but had it been easier to do the reverse to finish with potash, I expect they would be doing it.

As for splitting the companies, I still think it is easier and cheaper to keep them together at least until you are making money. As to how they share expenses is work for the accountants.

That's it for now. Let us hope a deal will get done to move this forward as all the juniors are in a race to be the first.
Bullboard Posts