CALGARY, Sept. 10, 2012 /CNW/ - Karnalyte Resources Inc.("Karnalyte" or the "Corporation"), filed on September 7, 2012 a preliminary short form base shelf
prospectus with the securities commissions in the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New
Brunswick, Prince Edward Island and Newfoundland and Labrador. If a
(final) short form base shelf prospectus is filed, the filing will,
subject to securities regulatory requirements, allow the Corporation to
make offerings of common shares, units, preferred shares in series and
notes or other types of unsecured debt securities (collectively, the "Securities") up to an aggregate offering price of $350 million during the 25-month
period that the final short form base shelf prospectus, including any
amendments thereto, remains effective. The Securities may be offered at
prices and on terms to be determined based on market conditions at the
time of sale and set forth in an accompanying shelf prospectus
supplement or in certain cases, an accompanying pricing supplement.
Unless otherwise specified in a prospectus supplement, the net proceeds
from the sale of the Securities will be used to fund the development of
Karnalyte's Wynyard Carnallite project on its property, which is
comprised of a total of 85,126 acres of land and which includes the
area covered by Karnalyte's Subsurface Mineral Permit KP 360A and
Subsurface Mineral Lease KLSA 010.
A copy of the preliminary short form base shelf prospectus may be
obtained from the Corporation by directing a request to Karnalyte
Resources Inc. at Unit 104, 26 Crystalridge Drive, Okotoks, Alberta,
T1S 2C3, Telephone 778-372-1806, Attention: Chief Financial Officer, or
can be found on SEDAR at www.sedar.com.
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 tpy of potash, increasing to 2.125 million tpy potash.
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 offering of securities 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. 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.
SOURCE: Karnalyte Resources Inc.
For further information:
Robin Phinney, President & Chief Executive Officer
Ron Love, Chief Financial Officer & Executive Vice-President
Telephone: (403) 995-6560