Karnalyte Resources Announces Major Shareholder Gsfc to Participat E IN Rights Offering
KARNALYTE.COM
TSX: KRN
KARNALYTE RESOURCES ANNOUNCES MAJOR SHAREHOLDER
GSFC TO PARTICIPAT E IN RIGHTS OFFERING
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- July 28, 2022) – Karnalyte Resources Inc. (“Karnalyte” or the “Company”) (TSX:
KRN) is pleased to announce today that its strategic partner and significant shareholder, Gujarat State
Fertilizers and Chemicals (“ GSFC”), will participate in the Company’s rights offering (the “ Rights
Offering”). GSFC’s participation further demonstrates its ongoing commitment and support for Karnalyte
and the Wynyard Potash project.
“The additional investment we will receive through GSFC’s participation in the Rights Offering speaks to
the belief and confidence that GSFC, a major player in India’s agricultural sector, has in Karnalyte’s
vision and strategic planning ,” said Danielle Favreau, Interim CEO of Karnalyte . “This is great news for
our Company as we work toward our ultimate goal of maximizing value for shareholders and all
stakeholders through the financing and construction of the Wynyard Potash project.”
GSFC is a major fertilizer and industrial chemicals manufacturing company in I ndia, with a 38.73%
ownership stake in Karnalyte.
The strategic partnership between Karnalyte and GSFC , established in 2013, provides a significant
competitive advantage to Karnalyte in the marketplace. Participating in the Rights Offering is yet another
show of confidence in Karnalyte’s efforts over the years, as Karnalyte’s development will help to provide
GSFC with a secure supply of potash for the years to come.
A copy of the Rights Offering notice and the Rights Offering Circular are available on Karnalyte’s website
at www.karnalyte.com.
ABOUT KARNALYTE RESOURCES INC.
Karnalyte Resources Inc. is a development stage company focused on two fertilizer products, potash and
nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the Wynyard Potash
Project, with planned phase 1 production of 625,000 tonnes per year (" TPY") of high -grade granular
potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY.
Karnalyte is also exploring the development of the Company’s Nitrogen Project, which is a proposed
small-scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric
tonnes per day (" MTPD") of ammonia and approximately 1,200 MTPD of urea, and a target customer
market of independent fertilizer wholesalers in Central Saskatchewan.
For further information, please contact:
Karnalyte Resources Inc.
+1 (306) 986-1486
www.karnalyte.com
FOR WARD -LOOKING STATEMENTS
Certain information included in this press release is forward -looking, within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but not always, identified by the use of
words such as "anticipate", "believe", "could", "estimate", "expect", "plan", "intend", "forecast", "future",
"guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar words or phrases
suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this press release are based on certain key expectations
and assumptions made by Karnalyte, including, without limitation, assumptions as to: projected
economics for the Company's planned Potash Project , the co nfirmation in an independent feasibility
study of Karnalyte's assumptions regarding the technical and economic viability of the Nitrogen Project,
the ability of Karnalyte to obtain financing on terms favourable to the Company, and the ability of
Karnalyte to receive, in a timely manner, the necessary approvals from the Board, shareholders,
regulatory authorities, and other third parties.
Karnalyte believes the expectations and assumptions upon which the forward -looking information is
based are reasonable. However, no assurance can be given that these assumptions and expectations will
prove to be correct. Accordingly, readers should not pla ce undue reliance on the forward -looking
statements and information contained in this press release. Without limiting the generality of the
foregoing, readers are cautioned that the Company has not received a feasibility study prepared by a
third party with respect to the Nitrogen Project.
Actual results may vary from the forward -looking information presented in this press release, and such
variations could be material. Risk factors and uncertainties could cause actual results to vary from the
forward-looking information in this press release. Additional information on forward -looking statements
and other factors that could affect Karnalyte's operations and financial results are included in documents
on file with Canadian securities regulatory authorities and may be accessed through the Company's profile
on the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date hereof and are expressly qualified in their
entirety by this cautionary statement. Subject to applicable securi ties laws, the Company assumes no
obligation to update or revise them to reflect new events or circumstances.