Karnalyte has net working capital of $1M at March 31
2022-05-12 22:46 ET - News Release
Mr. Danielle Favreau reports
KARNALYTE RESOURCES INC. ANNOUNCES 2022 FIRST QUARTER RESULTS
Karnalyte Resources Inc. has released its financial results and corporate highlights for the first quarter ended March 31, 2022.
During the first quarter of 2022, the Company was focused on the update to its NI 43-101 compliant technical report. As previously announced, Wood PLC, a leading global consulting and engineering company has been engaged as independent lead author of the update. More recently, the Company engaged industry leading solution mining and engineering firm ERCOSPLAN ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") to assist with the project including the update of the mineral resource estimation and the mine plan for brine field development as the basis for the mineral reserve estimate.
The Company also continued to consider and discuss with investment bankers and others options to raise capital. Options being considered include: a private placement, a short form prospectus offering and/or a rights offering. Updates on the Company's efforts to raise capital will be made when appropriate.
OUTLOOK FOR 2022
During the second quarter of 2022, the Company plans to complete the update to its NI 43-101 technical report and complete the raising of interim capital. 2022 FIRST QUARTER RESULTS
At March 31, 2022, the Company had cash of $1.1 million and positive net working capital of $1 million and no debt. Karnalyte's First Quarter 2022 Financial Statements and Managements' Discussion and Analysis are available at www.sedar.com and on Karnalyte's website at www.karnalyte.com.
The following information has been summarised from the Company's Condensed Interim Unaudited Financial Statements.
March 31, 2022 March 31, 2021 Total revenue - - Net and comprehensive loss (419) (577) Basic and diluted per share (0.01) (0.01) Total current assets 1,934 4,177 Total assets 7,826 10,110 Total liabilities 2,468 2,748 Total shareholders' equity 5,358 7,362
ABOUT KARNALYTE RESOURCES INC.
Karnalyte Resources Inc. is a development stage company focused on two fertilizer products, potash and nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the construction ready Wynyard Potash Project, with planned phase 1 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. Karnalyte 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.
ABOUT THE WYNYARD POTASH PROJECT
The Wynyard Potash Project is a construction ready solution mining potash project located in Wynyard, Saskatchewan, with planned phase 1 production of 625,000 TPY of high grade granular potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY. All environmental permits remain valid, preliminary detailed engineering is complete, and the existing offtake agreement with Gujarat State Fertilizers & Chemicals Limited remains in effect. Further development is dependent on the continued strength of potash prices and obtaining financing.
ABOUT THE PROTEOS NITROGEN PROJECT
The Proteos Nitrogen Project is an advanced stage development project consisting of a proposed small-scale nitrogen fertilizer plant to be located in Central Saskatchewan, having a nameplate production capacity of approximately 700 MTPD of ammonia and approximately 1,200 MTPD of urea, and designed to produce two products - anhydrous ammonia (82-0-0) and granular urea (46-0-0). Karnalyte's primary target market is independent local Saskatchewan fertilizer wholesalers within a 400-kilometer radius of Saskatoon, Saskatchewan. A secondary target market is the US Midwest fertilizer wholesalers near to the Canadian - United States border. The proposed plant would be the first greenfield nitrogen fertilizer plant built in Canada in the last 26 years.
ABOUT GUJARAT STATE FERTILIZERS & CHEMICALS LIMITED
Gujarat State Fertilizers & Chemicals Limited ("GSFC") is a leading Indian Fortune 500 chemicals and fertilizer company that has been in business for more than 50 years. GSFC currently operates one ammonia plant that was commissioned in the year 2000, and two urea plants that were established in 1969, at its fertilizer production complex in Vadodara, Gujarat State, India.
As the Company's strategic partner and single largest shareholder, GSFC remains committed to the Company and the Wynyard Potash Project, and is fully supportive of the Company pursuing the development of the Proteos Nitrogen Project. GSFC has also confirmed to the Company that it will continue to support the structuring of the most cost-effective financing package for the development of the Wynyard Potash Project, as GSFC has consistently offered to the Company since becoming a shareholder in 2013.