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SASKATOON, SK, July 28,
2022 /CNW/ - Karnalyte Resources Inc.
("Karnalyte" or the "Company") (TSX: KRN) is pleased
to announce today that its strategic partner and significant
shareholder, Gujarat State Fertilizers and Chemicals
("GSFC"), will participate in the Company's rights offering
(the "Rights Offering"). GSFC's participation further
demonstrates its ongoing commitment and support for Karnalyte and
the Wynyard Potash project.
"The additional investment we will receive through GSFC's
participation in the Rights Offering speaks to the belief and
confidence that GSFC, a major player in India's agricultural sector, has in
Karnalyte's vision and strategic planning," said Danielle Favreau, Interim CEO of Karnalyte.
"This is great news for our Company as we work toward our ultimate
goal of maximizing value for shareholders and all stakeholders
through the financing and construction of the Wynyard Potash
project."
GSFC is a major fertilizer and industrial chemicals
manufacturing company in India,
with a 38.73% ownership stake in Karnalyte.
The strategic partnership between Karnalyte and GSFC,
established in 2013, provides a significant competitive advantage
to Karnalyte in the marketplace. Participating in the Rights
Offering is yet another show of confidence in Karnalyte's efforts
over the years, as Karnalyte's development will help to provide
GSFC with a secure supply of potash for the years to come.
A copy of the Rights Offering notice and the Rights Offering
Circular are available on Karnalyte's website at
www.karnalyte.com.
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.