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SASKATOON, SK, Jan. 17, 2022 /CNW/ - Karnalyte Resources Inc.
("Karnalyte" or the "Company") (TSX: KRN) is pleased
to announce the selection of leading global consulting and
engineering company Wood Canada Ltd. ("Wood") as independent
lead author of the Company's planned update to its National
Instrument 43-101 technical report (the "Technical
Report").
update of bankable feasibility study to be completed
In light of positive potash market condition developments and in
support of continuing efforts to seek and attract investment and
strategic partners to the Wynyard Potash Project, Karnalyte is
updating its 2016 technical report in accordance with Canadian
Securities Administrators' National Instrument 43-101 ("NI
43-101"). Wood will serve as the primary lead author.
The key objectives of the update to the Technical Report are
to:
- Update capital cost summaries;
- Update operating cost summaries;
- Review and apply Karnalyte's internal cost savings studies;
and
- Update market and economic analysis.
Wood is a global leader in preparation of NI 43-101 technical
reports, and an update will serve as a critical step in developing
a strong foundation for Karnalyte's Wynyard Potash Project. Wood
has provided services for a range of potash mining companies,
including successfully preparing feasibility level studies for
various projects in Saskatchewan.
In addition to Wood, Karnalyte is pleased to report that it has
engaged the services of senior advisor ProMine Project Management
Ltd., and lead Brad Straub, to
assist the Company in its oversight and evaluation of the update to
the Technical Report. Mr. Straub has a long history of providing
support to current and proposed potash industry projects in various
capacities over the years. This includes over 25 years of project
management experience with majors BHP Billiton Potash Canada,
Nutrien (formerly PotashCorp) and Mosaic.
"We are excited to take this important step as we further our
efforts to attract investment partners to help us take the Wynyard
Potash Project forward," said Danielle
Favreau, Interim CEO of Karnalyte. "We believe the
Wynyard project has significant
strategic value given its environmental advantages including no
surface tailings, shorter construction lead time due to the prior
completion of technical pre-work and permitting, a strategic
partner with commitment of a minimum 56% offtake, and a high
quality product in a desirable granular form with many
possibilities for further upgrade."
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 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 Company's 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.
FORWARD-LOOKING STATEMENTS
Certain information included in this press release is
forward-looking, within the meaning of applicable Canadian
securities laws. Forward-looking information is often, but not
always, identified by the use of words such as "anticipate",
"believe", "could", "estimate", "expect", "plan", "intend",
"forecast", "future", "guidance", "may", "predict", "project",
"should", "strategy", "target", "will" or similar words or phrases
suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this press release
are based on certain key expectations and assumptions made by
Karnalyte, including, without limitation, assumptions as to:
projected economics for the Company's planned Potash Project, the
confirmation in an independent feasibility study of Karnalyte's
assumptions regarding the technical and economic viability of the
Nitrogen Project, the ability of Karnalyte to obtain financing on
terms favourable to the Company, and the ability of Karnalyte to
receive, in a timely manner, the necessary approvals from the
Board, shareholders, regulatory authorities, and other third
parties.
Karnalyte believes the expectations and assumptions upon which
the forward-looking information is based are reasonable. However,
no assurance can be given that these assumptions and expectations
will prove to be correct. Accordingly, readers should not place
undue reliance on the forward-looking statements and information
contained in this press release. Without limiting the generality of
the foregoing, readers are cautioned that the Company has not
received a feasibility study prepared by a third party with respect
to the Nitrogen Project.
Actual results may vary from the forward-looking information
presented in this press release, and such variations could be
material. Risk factors and uncertainties could cause actual results
to vary from the forward-looking information in this press release.
Additional information on forward-looking statements and other
factors that could affect Karnalyte's operations and financial
results are included in documents on file with Canadian securities
regulatory authorities and may be accessed through the Company's
profile on the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date hereof
and are expressly qualified in their entirety by this cautionary
statement. Subject to applicable securities laws, the Company
assumes no obligation to update or revise them to reflect new
events or circumstances.
SOURCE Karnalyte Resources Inc.
