Business
Karnalyte engages BNP Paribas and Natixis to underwrite a project finance facility of up to US$300 million
CALGARY , June 14, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporatio...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n\n\nCALGARY, June 14, 2013 /CNW/ - Karnalyte Resources Inc. (\"Karnalyte\" or\n the \"Corporation\") (TSX: KRN) today announced that it has entered into\n an engagement letter (the \"Engagement Letter\") pursuant to which it has\n engaged BNP Paribas and Natixis, New York Branch, on an exclusive\n basis, to act as lead arrangers (the \"Lead Arrangers\") for a senior\n secured project finance facility (the \"Facility\") of up to US$300\n million. The purpose of the Facility is to fund the construction and\n commissioning of the Wynyard Carnallite Project (the \"Project\").\n\n\nThe Facility will be structured on an underwritten basis whereby each\n Lead Arranger will underwrite 50% of the Facility subject to credit\n approval, due diligence and satisfactory legal documentation, and will\n syndicate it to banks, financial institutions and other institutional\n lenders.  The Engagement Letter contemplates the entering into of a\n definitive term sheet and commitment letters for the Facility upon the\n satisfaction of certain conditions.\n\n\nThe net proceeds from the Facility together with funds provided through\n Gujarat State Fertilizers and Chemicals Ltd., the Corporation's\n strategic investor, will provide Karnalyte with approximately 60% of\n the total capital required to construct the Project. Karnalyte is\n pursuing a financing strategy for the Project based on a combination of\n the Facility and equity.\n\n\nBank of Montreal is acting as Karnalyte's financial advisor in\n connection with the Facility.\n\n\nAbout Karnalyte Resources Inc.\n\n\nKarnalyte is engaged in the development of high quality agricultural and\n industrial potash and magnesium products. Karnalyte intends to develop\n and extract a carnallite - sylvite mineral deposit through a known\n solution mining process at competitive costs and with minimal\n environmental impacts. Using a staged approached to potash plant\n construction, the Corporation plans to operate a solution mining\n facility that will initially produce 625,000 tonnes of potash per year,\n increasing to 2.125 million tonnes of potash per year. Karnalyte owns a\n 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease\n KLSA-010 located near Wynyard, Saskatchewan, comprising a total of\n 85,126 acres.\n\n\nAbout BNP Paribas\n\n\nBNP Paribas (www.bnpparibas.com) has a pr...