Business
Karnalyte Resources Inc. and Gujarat State Fertilizers & Chemicals announce strategic investment and off-take agreement
(all dollar figures expressed in Canadian dollars) CALGARY, Jan. 10, 2013 /CNW/ - Karna...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n\n\n\n\n\n(all dollar figures expressed in Canadian dollars)\n\n\nCALGARY, Jan. 10, 2013 /CNW/ - Karnalyte Resources Inc. (\"Karnalyte\")\n (TSX:KRN) and Gujarat State Fertilizers & Chemicals Limited (\"GSFC\")\n (BSE:500690, NSE:GSFC, CSE:GSFC), a publicly-traded Indian agribusiness\n company focused on the production and sale of fertilizers and\n industrial products, announced today that:\n\n\nGSFC will make a strategic investment of approximately $45 million in\n Karnalyte at a price of $8.15 per common share of Karnalyte (\"Common\n Shares\"), which will result in GSFC holding a 19.98% ownership stake in\n Karnalyte; and\n\n\nKarnalyte and GSFC have agreed to a committed off-take agreement for the\n purchase of approximately 350,000 tonnes per year (\"TPY\") of potash\n from Phase 1 of Karnalyte's Wynyard Carnallite Project (the \"Project\"),\n increasing to 600,000 TPY with the commencement of Phase 2.  The\n off-take agreement will continue for approximately 20 years from the\n commencement of commercial production of Phase 1.\n\n\n\"GSFC's strategic investment and entering into the off-take agreement\n will support Karnalyte's growth strategy of constructing its potash\n production facility and commercializing a superior potash product,\"\n said Robin Phinney, President and CEO of Karnalyte. \"This investment by\n GSFC is a significant milestone for Karnalyte and establishes Karnalyte\n as a leader among the new class of potash developers. We are confident\n that GSFC's strategic investment and committed off-take agreement will\n be instrumental in the future success of the Project.\"\n\n\nAtanu Chakraborty, IAS, Managing Director of GSFC commented, \"At\n present, India is fully dependent on imports of potash.  This is a\n significant partnership by an Indian fertilizer manufacturing company\n with a potash mining company abroad to procure high quality potash for\n the Indian market.  Karnalyte is ahead of other junior potash mining\n companies in Canada in terms of expected commissioning of the Project.\n For GSFC, an assured supply will help in expanding its portfolio of\n fertilizers.\"\n\n\nStrategic Investment\n\n\nGSFC will subscribe for 19.98% of the issued and outstanding Common\n Shares after giving effect to this transaction at a price of $8.15 per\n Common Share in a non-brokered private p...