CALGARY, Dec. 12, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or
the "Corporation") (TSX: KRN) today announced that it has received the
Water Rights Licence to Use Ground Water ("WRL") and Approval to
Operate Works ("ATO") for the Wynyard Carnallite Project's (the
"Project") source water well from the Saskatchewan Water Security
Agency. The WRL grants the Corporation the right to withdraw brackish
ground water from the Blairmore formation to support the Project.
"Karnalyte successfully tested a full production-capacity disposal well
and a production-size source water well earlier this year,
demonstrating sufficient source water deliverability for the
first-phase production facility," said Robin Phinney, President and CEO
of Karnalyte. "Receipt of the WRL and ATO support an acceptable
Karnalyte continues to monitor the capital markets for opportunities to
access capital to support the construction of the first phase of the
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 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.
This press release contains forward-looking statements. More
particularly, this press release contains statements concerning the
Corporation's future operations and its access to capital markets. 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 and its ability to
secure additional capital. 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, failure to obtain necessary capital
financing, 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.
SOURCE: Karnalyte Resources Inc.
For further information:
Robin Phinney, President & Chief Executive Officer
Ron Love, Executive Vice-President Finance & Chief Financial Officer
Telephone: (403) 995-6560