CALGARY, March 18, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced its financial results and operational highlights for the year ended December 31, 2012.
"In 2012, Karnalyte focused on initial site preparation and detailed engineering activities, as well as preparing the Wynyard Carnallite Project's Environmental Impact Statement (EIS) for submission to the Saskatchewan Ministry of Environment (MOE)," said Robin Phinney, President and CEO of Karnalyte Resources Inc. "Subsequent to year-end, we received EIS approval from the MOE, entered into a strategic partnership and off-take agreement with Gujarat State Fertilizers and Chemicals and closed the associated $44.7 million private placement. These achievements have made the Corporation the most advanced junior potash developer, which puts Karnalyte in a strong position as we pursue additional Project funding."
As at December 31, 2012, the Company had net working capital of $22.3 million compared to $32.8 million at December 31, 2011, including $25.1 million and $34.3 million, respectively, in cash. Karnalyte's 2012 Year End Financial Statements and Management's Discussion and Analysis (MD&A) are available at www.sedar.com.
Over the short term, the Corporation will continue to focus on the following key initiatives:
- Advancing site preparation and detailed engineering activities to enable commencement of full construction activities at the site;
- Pursuing debt and/or equity financing to obtain the total funding required to bring the Project forward to plant and mine construction;
- Pursuing additional strategic partnerships that complement the arrangement with Gujarat State Chemicals and Fertilizers; and
- Hiring personnel required to construct the plant and mine.
|KARNALYTE RESOURCES INC.|
|STATEMENTS OF FINANCIAL POSITION|
|As at||December 31,||December 31,|
|Trade and other receivables||225,363||711,774|
|Deferred financing costs||843,897||102,893|
|Intangible exploration and evaluation and other assets||43,197,551||37,082,201|
|Trade and other payables||$||3,996,019||$||2,365,895|
|Capital lease liability||-||6,904|
|Warrants and rights||-||934,950|
|Total shareholders' equity||72,144,279||73,288,709|
|LIABILITIES AND SHAREHOLDERS' EQUITY||$||76,290,254||$||75,847,125|
|KARNALYTE RESOURCES INC.|
|STATEMENTS OF CHANGES IN EQUITY|
|Years ended December 31,|
|Balance, beginning of period||21,418,536||$||82,105,674||20,093,740||$||72,313,190|
|Common shares issued||-||-||470,000||4,042,000|
|Common shares issued on exercise of share options||261,115||735,874||609,500||3,060,100|
|Common shares issued on exercise of broker warrants||309,053||2,657,856||245,296||1,507,899|
|Transfer from contributed surplus on options exercised||-||1,188,128||-||1,097,522|
|Transfer from warrants on broker warrants exercised||-||785,520||-||410,435|
|Share issue costs||-||-||-||(325,472)|
|Balance, end of period||21,988,704||87,473,052||21,418,536||82,105,674|
|Warrants and Rights|
|Balance, beginning of period||368,528||934,950||585,624||1,273,605|
|Broker warrants and rights issued||-||-||28,200||71,780|
|Broker warrants and rights exercised||(309,053)||(785,520)||(245,296)||(410,435)|
|Broker warrants and rights expired||(59,475)||(149,430)||-||-|
|Balance, end of period||-||-||368,528||934,950|
|Balance, beginning of period||3,276,698||2,359,264|
|Share-based payment expense||2,804,663||2,014,956|
|Transfer to share capital on exercise||(1,188,128)||(1,097,522)|
|Broker warrants expired||149,430||-|
|Balance, end of period||4,905,686||3,276,698|
|Balance, beginning of period||(13,028,613)||(7,674,777)|
|Loss for the period||(7,205,846)||(5,353,836)|
|Balance, end of period||(20,234,459)||(13,028,613)|
|Total Shareholders' Equity|
|Balance, end of period||$||72,144,279||$||73,288,709|
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: