Karnalyte Resources Inc. was founded in 2007 and had its Initial Public Offering on December 14, 2010 directly to the Toronto Stock Exchange under the symbol TSX:KRN. Karnalyte intends to construct a 2.125 million tonnes per year potash solution mining facility using a three phase modular approach. The first phase is 625,000 tonnes per year followed by two 750,000 tonne expansions. Karnalyte will produce a premium granular potash product with minimal environmental impact. Karnalyte has obtained a bankable feasibility study, EIS approval, magnesium co-product preliminary feasibility study, and recently updated its 43-101 compliant technical report.
Vision & Strategy
Karnalyte intends to maximize shareholder and stakeholder value with the financing and construction of the Wynyard Project. Karnalyte Resources’ vision is to become a low-cost producer of high quality, low sodium granular potash. To move forward Karnalyte has partnered with GSFC, a major Indian agribusiness company.
In 2013, Gujarat State Fertilizers and Chemicals, one of India’s largest fertilizer and industrial chemicals manufacturing companies, made a strategic investment in Karnalyte of approximately $44.7 million, resulting in GSFC holding a 19.98% ownership stake in Karnalyte (the “Private Placement”).
In connection with the Private Placement, Karnalyte and GSFC executed an off-take agreement (the “Offtake Agreement) for GSFC’s purchase of approximately 350,000 tpy from Phase 1. The offtake commences with commercial production from Phase 1 with the result that Karnalyte has secured sales for approximately 56% of its potash production from Phase 1 for approximately 20 years.
The Agreement also provides GSFC with the option to increase its off-take to 600,000 tpy when Phase 2 goes into commercial production, and potentially up to 1,000,000 tpy when Phase 3 is completed.
The strategic partnership between Karnalyte and GSFC provides Karnalyte with a significant competitive advantage in the marketplace, and is anticipated to provide GSFC with a secure supply of potash for many years to come.