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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 24, 2015 9:54pm
152 Views
Post# 24224351

RE:RE:RE:RE:RE:Talk

RE:RE:RE:RE:RE:TalkTTT - I do not disagree about material change. I am just saying what I recall.

As for the details about the press release, the details are not all accurate. ie: the deal was $45 not $60mm.

"GSFC, with an aim to strengthen its mining operation in the potash mines of Karnalyte, now preparing for acquiring another 16% stake in the company, for which it will invest up to Rs. 150 cr, said S. K. Nanda, Chariman of GSFC."

As to the comments; Nanda added, “It is our strategic move as the prices of potash have almost fallen by a half in a year. GSFC will raise fund through internal accurals. We will add Rs. 50 cr as equity in the new company and the deal size is expected to be around Rs. 400-450 cr. Remaining capital would be raised through loans."

Unfortunately it is unclear,   Rs. 150 cr then Rs 50 cr. and deal size at 400-450 is barely enough capitial being less than $100 mm as long as the debt it over an above that amount. Do they get the balance from their affiliates? Then it works. As for the new company, it is KRN or the new company they form for the plant construction that is run independently and pay back a royalty?

Still can't do anything about this but guess and what Robin may know is unclear.




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