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Karnalyte Resources Inc. Announces Cessation of Negotiations in Respect of Financing for Phase I Potash Mine and Announces its Annual Meeting of Shareholders
Karnalyte Resources Inc. Announces Cessation of Negotiations in Respect of Financing for P...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n\n\n\nKarnalyte Resources Inc. Announces Cessation of Negotiations in Respect of Financing for Phase I Potash Mine and Announces its Annual Meeting of Shareholders\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nKarnalyte Resources Inc. Announces Cessation of Negotiations in Respect of Financing for Phase I Potash Mine and Announces its Annual Meeting of Shareholders\nCanada NewsWire\nCALGARY, Aug. 2, 2016\n\n\n\nCALGARY, Aug. 2, 2016 /CNW/ - Karnalyte Resources Inc. (\"Karnalyte\" or the \"Company\") (TSX; KRN) announces the cessation of negotiations with Gujarat State Fertilizers and Chemicals Limited (\"GSFC\") in respect of the proposed USD 700 million financing for Phase I of the Company's potash mine at Wynyard, Saskatchewan (the \"Transaction\"), as disclosed in the news release of the Company dated March 14, 2016.  GSFC has ceased negotiations in respect of the Transaction as Karnalyte and GSFC have been unable to reach an agreement on certain fundamental terms of the Transaction, including with respect to governance matters and the terms upon which Karnalyte's secondary minerals, including magnesium, will be developed in a separate entity to allow current Karnalyte shareholders to benefit from these currently untapped assets.\n\nWhile the parties have not formally terminated the framework agreement dated February 24, 2016 by and among Karnalyte, GSFC and Robin Phinney (the \"Framework Agreement\"), which requires that three of the six directors of Karnalyte be nominees of GSFC, the Framework Agreement will terminate on September 30, 2016 in accordance with its terms.  The Framework Agreement had been entered into by the parties to such agreement in order to facilitate the Transaction.  Further information concerning the Framework Agreement can be found in the news release of the Company dated March 14, 2016. The Framework Agreement is available on the Company's SEDAR profile at www.sedar.com.\n\nKarnalyte will hold an annual meeting of shareholders of the Company, which will take place on August 26,&#...