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SASKATOON, SK, Nov. 9, 2016 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX: KRN) today announced the filing of unaudited interim financial statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2016 (the "Third Quarter"). The financial results of the Third Quarter are as follows:
- A decrease in general and administrative expenses of $1,372,000 from Q3 2015 to Q3 2016;
- A decrease in cash since year-end of $8,912,000 as at September 30, 2016; and
- An increase in trade and other payables of $38,000 since year end to September 30, 2016.
As at September 30, 2016, the Company had net working capital of $17.4 million compared to $28.1 million at September 30, 2015, including $18,821,000 and $29,786,000 respectively, in cash.
Karnalyte's Third Quarter 2016 Financial Statements and Management's Discussion and Analysis are available at www.sedar.com.
ABOUT KARNALYTE RESOURCES INC.
Karnalyte is engaged in the business of exploration and development of high purity 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 approach to construction, the Company plans to operate a solution mining facility that will initially produce 625,000 tpy, increasing to 2.125 million tpy of potash.
Karnalyte's common shares are traded on the TSX under the symbol KRN.
Certain information included in this press release is forward-looking, within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "could", "estimate", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar words or phrases suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Karnalyte, including, without limitation, assumptions as to: the outcome of the Optimization Program, projected economics for the Company's planned potash production facility, the ability of Karnalyte to obtain financing on terms favourable to the Company, and the ability of Karnalyte to receive, in a timely manner, the necessary approvals from the Company's board of directors, shareholders, regulatory authorities, and other third parties.
Karnalyte believes the expectations and assumptions upon which the forward-looking information is based are reasonable. However, no assurance can be given that these assumptions and expectations will prove to be correct. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release.
Actual results may vary from the forward-looking information presented in this press release, and such variations could be material. Risk factors and uncertainties could cause actual results to vary from the forward-looking information in this press release. Additional information on forward-looking statements and other factors that could affect Karnalyte's operations and financial results are included in documents on file with Canadian securities regulatory authorities and may be accessed through the Company's profile on the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances.
SOURCE Karnalyte Resources Inc.
For further information: Robin Phinney, President, Karnalyte Resources Inc., 1(306) 986-1486, [email protected], www.karnalyte.com