Karnalyte Resources Inc T.KRN

Comments on news release

[patospower]

So the cat is out of the bag, the reason gsfc pulled the plug on financing is simply because they were too broke all along. I am glad they finally tell us what's up so we stop with the wild theories. This release is mostly very encouraging news, but i have one concern. We have been told for a long time now that we are in discussions with potentially interested parties to finance this deal. It'd be nice to get an actual status update - from the language I assume everything is still preliminary. Structuring a deal that would be favorable to both parties is something that actually should be up Danielle's and her public accountant friends' alley, just have to get a little creative and get in serious talks with interested parties to figure out if there are any specific concerns that can be addressed. Looks like they already have some ideas in mind (royalties etc). Make no mistake we are likely dealing with smart money.

[Trade33right]

It would be nice if we were dealing with smart money but what would be smart about teaming up with KRN to do a N project when we have P and Mg resource we can't get started?  I don't get it. They should build it themselves or align with someone who has expertise in N. 

[mdjbrown]

Interesting dilema for sure T33 There are others in Saskatchewan seeking funding for world class nitrogen projects as well, and have been for years.  GSFCs expertise is in India, not in Saskatchewan and there are many obvious differences. Karnalytes market cap is low enough that big money would simply take the company out, and run it the way they wanted. Problem is, GSFC is insulated from

[Trade33right]

MDJ When you look at the financials, what real estate holdings does the company have?

[Trade33right]

Sorry for leaning on you for Financials information MJD, but I am not very smart. I guess that's pretty clear after considering I have kept my shares through the rise and fall of the share price. When you say we have $2.5m, how does the promissory note figure in?

[mdjbrown]

Sorry T33, I didnt see your questions as I was taken back by GGs post. The approx $2.5 remaining in the treasury is just a rough guesstimate based on $3.1 as of March 31, and we are closing in on June 31.  Admin costs, ongoing legal costs, and a potential 6 figure settlement with a previous CEO would easily eat up $600K. It might be lower but we wont know until Q2 financials are released

[patospower]

I am talking about potash exclusively here, forget nitrogen. My reference to smart money is that they will know how much negotiating leverage they have and they will not accept any deal that is not clearly advantageous to them. You know... sharks. The tricky part for ms. Favreau and co is to find a way to structure a deal that is advantageous to them AND us. Possible but requires creative problem

[Trade33right]

Fair enough  We both want to see a deal get done.  be good to get clarity on the GSFC payment before they start the sell off of whatever. 

[mdjbrown]

patos, the part of this being missed here is GSFC 100% controls the entire narrative of any potential deal whether potash or jelly beans! If deep pockets want to get involved, they will have to accept GSFCs control, and based on the last 8 years that might be a difficult ask. Dont kid yourself, any interested shark has been watching the past years calamity Karnalytes leverage is substantially

[AriW16o]

Hmm... they want to save costs but in the same time they increase the BoD numbers, this I really don't get it. So selling assets (not essential to Potash project) to pay current and new directors??? Normally in a good running company, directors salary will be cut, no bonus (stock option) when no target achieved or company in big problem. GSFC 100% in control, yeah don't forget the stupid