Karnalyte Resources Inc. was founded in 2007 and had its Initial Public Offering on December 14, 2010 directly to the Toronto Stock Exchange under the symbol TSX:KRN.
Karnalyte intends to construct a 2.125 million tonnes per year potash solution mining facility using a three phase modular approach. The first phase is 625,000 tonnes per year followed by two 750,000 tonne expansions. Karnalyte will produce a premium granular potash product with minimal environmental impact.
Karnalyte has obtained a bankable feasibility study, EIS approval, magnesium co-product preliminary feasibility study, and recently updated its 43-101 compliant technical report.
Strategic Partnership
Karnalyte Resources Inc. has a strategic partnership with Gujarat State Fertilizers and Chemicals (“GSFC”), one of India’s largest fertilizer and industrial chemicals manufacturing companies. GSFC holds a 47.73% ownership stake in Karnalyte.
In connection with this partnership, Karnalyte and GSFC executed an off-take agreement (the “Offtake Agreement) for GSFC’s purchase of approximately 350,000 tpy from Phase 1. The offtake commences with commercial production from Phase 1 with the result that Karnalyte has secured sales for approximately 56% of its potash production from Phase 1 for approximately 20 years.
The Agreement also provides GSFC with the option to increase its off-take to 600,000 tpy when Phase 2 goes into commercial production, and potentially up to 1,000,000 tpy when Phase 3 is completed.
The strategic partnership between Karnalyte and GSFC provides Karnalyte with a significant competitive advantage in the marketplace, and is anticipated to provide GSFC with a secure supply of potash for many years to come.