Karnalyte Resources: In Principle US$700 Million Financing Agreement for Phase 1 Potash Mine

Karnalyte Resources (TSXV:KRN) has entered into an agreement in principle with Gujarat State Fertilizers and Chemicals for a US$700 million financing agreement for the company’s phase 1 potash mine at Wynyard, Saskatchewan. The companies have also signed an agreemend in principle to spin-out Karnalyte’s secondary mineral assets and unexplored lands into one or more separate entities.
Karnalyte founder and president, Robin Phinney, said:

I am proud to announce that Karnalyte is about to achieve its most significant milestone yet: a fully financed structure to build our potash mine in Saskatchewan. We are extremely pleased to have entered into the Agreement in Principle with GSFC which is expected to enable Karnalyte to develop its significant potash resource. The Agreement in Principle provides for a comprehensive financing package to fully fund Karnalyte’s 625,000 tpy potash mine while enabling shareholders to maximize their investment in Karnalyte’s secondary minerals and unexplored lands.
I would like to thank GSFC who has been supportive of Karnalyte’s project since GSFC’s initial investment in 2013, and Karnalyte’s management team and employees for their hard work in securing such a compelling transaction in otherwise difficult markets. I look forward to presenting the full details of the transaction for shareholder approval once we have concluded final documentation.

Click here for the full press release.