Karnalyte engages BNP Paribas and Natixis to underwrite a project finance facility of up to US$300 million

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 
conditions. 
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 
the Facility. 
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. 
Forward-Looking Statements 
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 
E-mail:info@karnalyte.com Website:www.karnalyte.com 
SOURCE: Karnalyte Resources Inc. 
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CO: Karnalyte Resources Inc.
ST: Alberta
NI: MNG FIN  
-0- Jun/14/2013 11:00 GMT
 
 
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