Business
Karnalyte Resources Inc. and Gujarat State Fertilizers & Chemicals Ltd. Announce Closing of Private Placement
GSFC's Vishvesh D. Nanavaty Appointed to Karnalyte's Board of Directors (all doll...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n\n\n\n\n\n\n\n\nGSFC's Vishvesh D. Nanavaty Appointed to Karnalyte's Board of Directors\n\n\n(all dollar figures expressed in Canadian dollars)\n\n\nCALGARY, March 7, 2013 /CNW/ - Karnalyte Resources Inc. (\"Karnalyte\" or\n the \"Corporation\") (TSX:KRN) and Gujarat State Fertilizers & Chemicals\n (\"GSFC\") today announced that they have closed their previously\n announced non-brokered Private Placement. Karnalyte has issued GSFC\n approximately 5,490,000 common shares of Karnalyte at a price of $8.15\n per common share for total gross proceeds of approximately $44.7\n million. GSFC now holds a 19.98% ownership stake in Karnalyte.\n\n\n\"In addition to putting the off-take agreement into effect, the closing\n of the Private Placement represents a significant step towards\n obtaining the total funding required to enable construction of the\n Wynyard Carnallite Project,\" said Robin Phinney, President and CEO of\n Karnalyte. \"This agreement is a testament to the superior quality of\n Karnalyte's potash product, and the partnership with GSFC will provide\n us with product marketing and distribution support in the Indian\n marketplace.\"\n\n\nVishvesh D. Nanavaty, General Manager of Finance of GSFC and newly\n appointed Director of Karnalyte commented, \"This agreement with\n Karnalyte represents a long-term, mutually beneficial strategic\n partnership: GSFC has secured a significant amount of high quality\n potash to distribute in a market that is fully dependent on imports,\n and we are looking forward to working with Karnalyte to bring the\n Wynyard Carnallite Project into production.\"\n\n\nThe common share issue price of $8.15 is based on a 20% premium to the\n volume weighted average price of Karnalyte's Common Shares traded on\n the Toronto Stock Exchange for the 20 trading days ended December 20,\n 2012. The issue price is subject to an adjustment if commercial\n production has not commenced on or before October 1, 2016, which may be\n satisfied by the issuance of an additional 555,555 common shares by\n Karnalyte to GSFC at that time. In accordance with applicable Canadian\n securities laws, the common shares distributed pursuant to the Private\n Placement will be subject to a hold period of four months following\n issuance.\n\n\nPursuant to the terms of the Subscription Agreement, GSFC retains the\n right to maint...