Karnalyte Resources receives Environmental Impact Statement approval for
Wynyard Carnallite Project
CALGARY, Feb. 11, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the
"Corporation") (TSX: KRN) today announced that the Saskatchewan Ministry of
Environment ("MOE") has approved the Environmental Impact Statement ("EIS")
for Karnalyte's Wynyard Carnallite Project (the "Project").
"EIS approval is essential to the advancement of the Wynyard Carnallite
Project, and was a condition of the $45 million strategic investment by GSFC,"
said Robin Phinney, President and CEO of Karnalyte. "EIS approval is a
significant milestone for Karnalyte. We are now in a stronger position as we
actively pursue additional funding opportunities to enable the start of Phase
I of the Project's construction in the second quarter of this year."
Karnalyte submitted a revised EIS to the Saskatchewan MOE in September 2012 in
accordance with the Environmental Assessment Act. After technical and public
review, the MOE is satisfied that any adverse environmental effects can be
eliminated or minimized.
Karnalyte will now focus on obtaining the permits required to initiate
construction while continuing detailed engineering activities and finalizing
site preparation. Karnalyte intends to advance the development of the Project
concurrently with securing funding.
On January 10, 2013, the Corporation announced that it had entered into a
strategic investment agreement with Gujarat State Fertilizers & Chemicals
("GSFC"), where GSFC will make a strategic investment of approximately $45
million in Karnalyte and a committed off-take agreement for the sale and
purchase of approximately 350,000 tonnes per year ("TPY") of potash from Phase
1 of the Project, increasing to 600,000 TPY with the commencement of Phase
2. Closing of the strategic investment was conditional on receiving the
approval of the EIS from the MOE. The closing date is anticipated to take
place on or about February 22, 2013.
About Karnalyte Resources Inc.
Karnalyte is engaged in the business of exploration and development of high
quality agricultural and industrial potash and magnesium products. Karnalyte
intends to develop and extract a carnallite - sylvite mineral deposit through
a known solution mining process at competitive costs and with minimal
environmental impact. Using a staged approached to potash plant
construction, the Corporation plans to operate a solution mining facility that
will initially produce 625,000 tonnes of potash per year, increasing to 2.125
million tonnes of potash per year. Karnalyte owns a 100% interest in
Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near
Wynyard, Saskatchewan, comprising a total of 85,126 acres.
This press release contains forward-looking statements. More particularly,
this press release contains statements concerning the Corporation's future
operations, including plant construction and the closing of the strategic
investment with GSFC. The forward-looking statements contained in this
document are based on certain key expectations and assumptions made by
Karnalyte, including with respect to the Corporation's future operations.
Although Karnalyte believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Karnalyte can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, the failure to obtain
necessary regulatory approvals, risks associated with the mining industry in
general (e.g., operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of estimates and projections relating
to production, costs and expenses, and health, safety and environmental
risks), commodity price and exchange rate fluctuations. Readers are
cautioned that the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect Karnalyte's
operations and financial results are included in documents on file with
Canadian Securities regulatory authorities and maybe accessed through the
SEDAR website (www.sedar.com). The forward-looking statements contained in
this document are made as of the date hereof and Karnalyte undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
Robin Phinney, President & Chief Executive Officer Ron Love, Executive
Vice-President & Chief Financial Officer Telephone: (403) 995-6560
SOURCE: Karnalyte Resources Inc.
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