CALGARY, May 25, 2015 /CNW/ - Robin L. Phinney, a significant shareholder of Karnalyte Resources Inc. ("Karnalyte" or the "Company") has today filed an update to the early warning report initially filed on December 10, 2014 which previously disclosed the understanding reached by Mr. Phinney and a group of concerned shareholders of Karnalyte (the "Concerned Shareholder Group"), who agreed to work together to evaluate and seek means to preserve and enhance shareholder value at Karnalyte (the "Concerned Shareholder Group Report").
In light of the reconstitution of the Karnalyte board of directors as described in the Company's recent press release dated May 21, 2015 announcing (among other things), the resignation of certain directors of Karnalyte and the replacement thereof by two nominees of Gujarat State Fertilizers and Chemicals Ltd. ("GSFC") and three nominees of Mr. Phinney (the "Board Reconstitution Press Release"), Mr. Phinney has disbanded the Concerned Shareholder Group and is no longer working jointly or in concert with them.
Mr. Phinney commented: "I would like to sincerely thank Karnalyte shareholders for their tremendous support during the past few months. Now that the Karnalyte board has been reconstituted, we can look forward to building shareholder value."
As well, and further to the April 15, 2015 early warning report and press release by Mr. Phinney announcing (among other things) that GSFC had agreed to support the immediate reconstitution of the board of directors of Karnalyte, GSFC may still be considered to be acting jointly or in concert with Mr. Phinney and his nominees as a result of an agreement between them in respect of Karnalyte which includes provisions pertaining to, among other things, the director nominees of Phinney and GSFC; the manner by which senior management of Karnalyte will be selected; voting support by GSFC at the 2015 shareholders' meeting; and a framework and commitment to negotiate in good faith regarding acceptable project financing for the development of the Company's Wynyard Carnallite Project.
This news release is issued pursuant to the early warning requirements of applicable Canadian securities laws. A copy of the early warning report to which this news relates is or will be available under Karnalyte's SEDAR profile at www.sedar.com.
SOURCE Robin L. Phinney
For further information: including to obtain a copy of the early warning report referred to herein, please contact Robin L. Phinney at +1 (403) 554-8126.