CALGARY, June 17, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or
the "Corporation") (TSX: KRN) today announced that it has entered into
an agreement (the "Agreement") with Whiting Equipment Canada Inc.
("Whiting"), for the engineering and design of evaporators, potash
crystallizers and auxiliary equipment at Karnalyte's planned solution
mining facility located near Wynyard, Saskatchewan.
"Whiting and its sister company Swenson are recognized leaders in the
development and engineering of potash processing equipment and
methodologies, with extensive Canadian and international experience,"
said Robin Phinney, President and CEO of Karnalyte. "The signing of
this agreement, paired with an expected project finance facility of up
to US$300 million, represents a significant step towards construction
of the first phase of our planned potash plant."
Under the terms of the Agreement, Whiting will provide engineering and
design services related to the major equipment components used in
Karnalyte's planned potash processing operations, including evaporators
About Whiting Equipment Canada Inc.
Whiting Equipment Canada Inc. engineers and manufactures high quality
custom designed equipment for chemical & metallurgical industries,
materials handling & railways, mass transit, and other sectors across
North America and around the world. Whiting Equipment Canada Inc. is a
subsidiary of Whiting Corporation (Monee, Illinois).
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. 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.
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