Karnalyte engages BNP Paribas and Natixis to underwrite a project finance
facility of up to US$300 million
CALGARY, June 14, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the
"Corporation") (TSX: KRN) today announced that it has entered into an
engagement letter (the "Engagement Letter") pursuant to which it has engaged
BNP Paribas and Natixis, New York Branch, on an exclusive basis, to act as
lead arrangers (the "Lead Arrangers") for a senior secured project finance
facility (the "Facility") of up to US$300 million. The purpose of the Facility
is to fund the construction and commissioning of the Wynyard Carnallite
Project (the "Project").
The Facility will be structured on an underwritten basis whereby each Lead
Arranger will underwrite 50% of the Facility subject to credit approval, due
diligence and satisfactory legal documentation, and will syndicate it to
banks, financial institutions and other institutional lenders. The
Engagement Letter contemplates the entering into of a definitive term sheet
and commitment letters for the Facility upon the satisfaction of certain
The net proceeds from the Facility together with funds provided through
Gujarat State Fertilizers and Chemicals Ltd., the Corporation's strategic
investor, will provide Karnalyte with approximately 60% of the total capital
required to construct the Project. Karnalyte is pursuing a financing strategy
for the Project based on a combination of the Facility and equity.
Bank of Montreal is acting as Karnalyte's financial advisor in connection with
About Karnalyte Resources Inc.
Karnalyte is engaged in the 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 impacts. 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.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) has a presence in nearly 80 countries with
190,000 employees, including 145,000 in Europe. It ranks highly in its three
core activities: Retail Banking, Investment Solutions and Corporate &
Investment Banking. In Europe, the Group has four domestic markets (Belgium,
France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader
in consumer lending. BNP Paribas is rolling out its integrated retail banking
model across Mediterranean basin countries, in Turkey, in Eastern Europe and a
large network in the western part of the United States. In its Corporate &
Investment Banking and Investment Solutions activities, BNP Paribas also
enjoys top positions in Europe, a strong presence in the Americas and solid
and fast-growing businesses in Asia-Pacific.
This press release contains forward-looking statements. More particularly,
this press release contains statements concerning the Corporation's securing
of a credit facility and projected use of proceeds. 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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-0- Jun/14/2013 11:00 GMT
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