Okotoks, Alberta — India’s Gujarat State Fertilizers & Chemicals Ltd. will make a strategic investment of approximately C$45-million in Karnalyte Resources Inc. at a price of $8.15 per common share, which will result in GSFC holding a 19.98 percent ownership stake in Karnalyte. Karnalyte and GSFC have agreed to a committed off-take agreement for the purchase of approximately 350,000 mt/y of potash from phase 1 of Karnalyte’s Wynyard carnallite project, increasing to 600,000 mt/y with the commencement of phase 2. The off-take agreement will continue for approximately 20 years from the commencement of commercial production of phase 1. GSFC shall have the right to appoint one nominee to the board of directors of Karnalyte. GSFC retains the right to maintain its equity position in future equity offerings and has agreed to commit approximately $15 million in the next rounds of public equity financing by Karnalyte to finance the construction of phase 1 of the project. Using a staged approached to potash plant construction, Karnalyte plans to operate a solution mining facility that will initially produce 625,000 mt/y, increasing to 2.125 million mt/y. Karnalyte owns a 100 percent interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Sask., comprising a total of 85,126 acres. Karnalyte is listed on the Toronto Stock Exchange under the symbol KRN.
Transparency Across the Fertilizer Value-Chain