Business
Karnalyte Resources Provides Update on its Strategic Review and Other Corporate Matters
Karnalyte Resources Provides Update on its Strategic Review and Other Corporate Matters ...
About this update from Karnalyte Resources Inc.
[{"type":"text","content":"\n \n \n \n Karnalyte Resources Provides Update on its Strategic Review and Other Corporate Matters\n \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.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n ./\n \n \n \n \n SASKATOON, SK\n \n ,\n \n June 23, 2021\n \n /CNW/ - Karnalyte Resources Inc. (\"\n \n Karnalyte\n \n \" or the \"\n \n Company\n \n \") (TSX: KRN) is pleased to provide an update on its corporate strategic review that was prepared by MNP LLP (the \"\n \n Strategic Review Report\n \n \" or \"\n \n Report\n \n \") as well as other corporate and governance matters.\n \n \n \n Strategic Review\n \n \n \n As previously announced, Karnalyte's Board of Directors (the \"\n \n Board\n \n \") initiated the strategic review process to evaluate a broad range of potential strategic alternatives available to the Company, including the evaluation of its existing and future projects, with a focus on determining what is in the best interests of Karnalyte and maximizing value for all of its shareholders.\n \n \n Specific matters addressed in the Strategic Review Report include but are not limited to: a review and analysis of the Company's proposed nitrogen project; an analysis and market sounding activities for the Company's potash project; and improving Karnalyte's financial position.\n \n \n \n Nitrogen Project\n \n \n \n In the Strategic Review Report, the opportunity of building a regional nitrogen production facility near\n \n Saskatoon, Saskatchewan\n \n (the \"\n \n Nitrogen Project\n \n \") was analyzed as one of the options to maximize shareholder value of Karnalyte.\n \n \n The Report concluded that the Nitrogen Project could be a profitable venture, with an estimated average annual cash flow of\n \n US$52 million\n \n per year, an IRR of 9.06% and a payback period of under 10 years if all product produced is sold at expected market values within the production period. These projections were predicated on the market price of nitrogen ferti...