Karnalyte Resources Inc. Announces 2019 First Quarter Results and Annual and Special Meeting of Shareholders Voting Results
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KARNALYTE RESOURCES INC. ANNOUNCES 2019 FIRST QUARTER RESULTS
AND
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
VOTING RESULTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- May 15, 2019) – Karnalyte Resources Inc. (“Karnalyte” or the “Company”)
(TSX: KRN) today announced its financial results and operational and corporate highlights for the first
quarter ended March 31, 2019, together with the voting results from the annual and special meeting of
shareholders held on May 14, 2019.
Highlights
Wynyard Potash initial capital cost update progressing
Proteos Nitrogen continues to systematically advance through development
All matters of business at the annual and special meeting of shareholders held in Saskatoon,
Saskatchewan on May 14, 2019 passed with the requisite majority
Frank D. Wheatley appointed Chief Executive Officer of the Company concurrently with W. Todd
Rowan stepping down as Interim CEO
Wynyard Potash
Karnalyte is encouraged by the continuing improvement in potash prices, however, they have not yet
reached the level where Wynyard Potash is an economically viable and financeable mining project. Global
economic uncertainty continues to prevail, making developing and financing a major capital project like
Wynyard Potash more challenging.
We continue to take a prudent and disciplined approach to the development of Wynyard Potash, as we
update initial capital costs and operating costs during the balance of 2019 in order to position the Company
to advance the development of Wynyard Potash when feasible.
Proteos Nitrogen
Proteos Nitrogen is a compelling part of Karnalyte’s future. Moving into the manufacturing of nitrogen
will provide valuable diversification away from a reliance on potash alone and give us another market in
which to do business. Our current focus is on land assembly for site acquisition, which will be followed by
environmental baseline field work, technology provider selection and initial technical work to solidify the
technical project and establish initial project economics . Our discussions with local agricultural industry
partners regarding their potential participation in Proteos Nitrogen continues.
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2019 First Quarter Results
At March 31, 2019, the Company had cash of $9.2 million, a positive working capital of $9.5 million and
no debt. The Company has adequate cash to fund any existing commitments in 2019, as well as to meet
short term operating and capital requirements. Karnalyte’s First Quarter 2019 Financial Statements and
Managements’ Discussion and Analysis are available at www.sedar.com.
The information has been summarized from the Company’s Condensed Interim Unaudited Financial
Statements.
Outlook for 2019
During the second quarter of 2019, the Company will continue its work to update initial capital and
operating costs for Wynyard Potash. The Company will also focus on land assembly for site acquisition,
environmental baseline field work, technology provider selection, initial technical work and discussions
with local agricultural industry partners regarding their potential participation in Proteos Nitrogen.
Voting Results of Annual and Special Meeting of Shareholders
At the Meeting, 23,639,394 shares represented by shareholders present in person and by proxy, representing
56.05% of the Company’s issued and outstanding common shares. The voting results for all matters brought
forth at the Meeting are set out below.
Fixing the Number of Directors at Three
Name Votes For % Votes
For
Votes Against % Votes Against
Three Directors 20,423,876 89.97 2,277,347 10.03%
Election of Directors
Name Votes For % Votes
For
Votes
Withheld
% Votes
Withheld
W. Todd Rowan 20,396,902 89.85% 2,304,321.00 10.15%
Vishvesh D. Nanavaty 20,187,302 88.93% 2,513,921.00 11.07%
Sanjeev V. Varma 20,372,923 89.75% 2,328,300.00 10.25%
Selected Quarterly Results
2019 2018
Mar 31 Mar 31
Total revenue -$ -$
Comprehensive (loss) (905) (745)
Basic and diluted loss per share (0.03) (0.03)
Total current assets 10,068 12,010
Total assets 15,843 17,839
Total liabilities 2,383 790
Total shareholders' equity 13,460 17,049
*Expressed in thousands except loss per share
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Appointment of Auditors
Name Votes For % Votes
For
Votes
Withheld
% Votes
Withheld
KPMG 21,244,205 89.87% 2,395,189 10.13%
Re-Approval of Stock Option Plan
Name Votes For % Votes
For
Votes Against % Votes Against
Stock Option Plan 20,403,677 89.81% 2,316,296 10.19%
Change of Name
Name Votes For % Votes
For
Votes
Withheld
% Votes
Withheld
Change of Company Name 20,544,419 90.42% 2,175,554 9.58%
Appointment of CEO
Effective immediately, Frank D. Wheatley has been appointed the Chief Executive Officer of the Company.
Concurrently with Mr. Wheatley’s appointment, Mr. W. Todd Rowan has stepped down as the Interim CEO
of Karnalyte. The Board of Directors of Karnalyte expresses its sincere gratitude to Mr. Rowan for his
efforts over the past two years to help stabilize and position Karnalyte to execute on its corporate strategy.
Mr. Rowan will remain a significant shareholder and member of the Board of Directors of the Company.
Mailing List
In order to receive the latest updates, we encourage all shareholders to subscribe to our mailing list. In
order to sign up to the new list, please use the following link: http://karnalyte.com/mailing-list-signup/
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is an advanced development stage company focused on two fertilizer products,
potash and nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the construction
ready 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 tonnes per year (Mtpy). Karnalyte is also exploring the development of the Proteos 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.
About the Wynyard Potash Project
The Wynyard Potash Project is a construction ready solution mining potash project located in Wynyard,
Saskatchewan, with planned phase 1 production of 625,000 tpy of high grade granular potash, and two
subsequent phases of 750,000 tpy each, taking total production up to 2.125 Mtpy. All environmental
permits remain valid, preliminary detailed engineering is complete, and the existing offtake agreement with
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Gujarat State Fertilizers & Chemicals Limited remains in effect. Further development is dependent on
improved potash prices.
About the Proteos Nitrogen Project
The Proteos Nitrogen Project is an advanced stage development project consisting of a proposed small-
scale nitrogen fertilizer plant to be located in Central Saskatchewan, having a nameplate production
capacity of approximately 700 mtpd of ammonia and approximately 1,200 mtpd of urea, and designed to
produce two products – anhydrous ammonia (82-0-0) and granular urea (46-0-0). Karnalyte’s primary
target market is independent local Saskatchewan fertilizer wholesalers within a 400-kilometer radius of
Saskatoon, Saskatchewan. A secondary target market is the US Midwest fertilizer wholesalers near to the
Canadian – United States border. The proposed plant would be the first greenfield nitrogen fertilizer plant
built in Canada in the last 26 years.
About Gujarat State Fertilizers & Chemicals Limited
Gujarat State Fertilizers & Chemicals Limited (“GSFC”) is a leading Indian Fortune 500 chemicals and
fertilizer company that has been in business for more than 50 years. GSFC currently operates one ammonia
plant of 445,000 Mtpy nameplate capacity, which was commissioned in the year 2000 based on Linde’s
technology (after the two old ammonia plants established in 1969 were retired due to higher energy
consumption), and two urea plants, with a total of 370,590 Mtpy nameplate capacity which were established
in 1969, at its fertilizer production complex in Vadodara, Gujarat State, India. GSFC’s urea plants have
consistently operated at optimum capacity over the past five decades.
As t he Company’s strategic partner and single largest shareholder, GSFC remains committed to the
Company and the Wynyard Potash Project and is fully supportive of the Company pursuing the
development of the Proteos Nitrogen Project. GSFC has also confirmed to the Company that it will continue
to support the structuring of the most cost-effective financing package for the development of the Wynyard
Potash Project, as GSFC has consistently offered to the Company since becoming a shareholder in 2013.
For further information, please contact:
Frank D. Wheatley
CEO
Karnalyte Resources Inc.
1(306) 986-1486
www.karnalyte.com
FORWARD-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.
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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 production facility, the confirmation in an independent feasibility study of
Karnalyte’s assumptions regarding the technical and economic viability of the Proteos 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 Company’s board of directors,
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 place 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 Proteos 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 securities laws, the Company assumes no obligation to
update or revise them to reflect new events or circumstances.