Karnalyte Resources Inc. Announces 202 3 Second Quarter Results
KARNALYTE.COM
TSX: KRN
KARNALYTE RESOURCES INC. ANNOUNCES 202 3 SECOND
QUARTER RESULTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- August 11, 2023) – Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX:
KRN) today announced its financial results and corporate highlights for the second quarter ended June 30,
2023.
The achievements are a show of the Company’s commitment to developing its Wynyard Potash Project,
dedication to good governance, and continued focus on increasing value for investors.
As previously announced, Karnalyte continues to work on the update to its NI 43-101 compliant technical
report, a critical step towards capital investment and eventual construction of the Potash Project. The
Company has now tasked leading global consulting and engineering company Wood PLC, the independent
lead author of the updated technical report, to undertake additional evaluation of cost savings to ensure
maximum value for investors.
The Company also announced this quarter the election of a highly qualified new Board Director, Ritu
Malhotra, who will bring valuable expertise in engineering and leadership to the Karnalyte board. In addition
to this, Karnalyte achieved a significant lawsuit settlement, enabling it to continue its efforts in advancing
Company initiatives.
OUTLOOK FOR 2023
In 2023, the Company plans to complete the update to its NI 43-101 technical report; to continue to work on
identifying cost efficiencies, optimizing construction costs and operation plans, and enhancing project
sustainability; and to increase business development activities to seek out and attract investment and
strategic partners to move one or both of the Company’s projects forward to development.
2023 SECOND QUARTER RESULTS
At June 30, 2023, the Company had cash of $2.7 million and positive net working capital of $ 2.7 million with
no debt. Karnalyte’s Second Quarter 2023 Financial Statements and Managements’ Discussion and Analysis are
available at www.sedarplus.com and on Karnalyte’s website at www.karnalyte.com.
The following information has been summarised from the Company's Condensed Interim Unaudited Financial
Statements.
June 30, 2023 June 30, 2022
Total revenue - -
Net and comprehensive loss (390) (424)
Basic and diluted per share (0.01) (0.01)
Total current assets 3,335 1,504
Total assets 9,003 7,185
Total liabilities 1,896 2,225
Total shareholders’ equity 7,107 4,960
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 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 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 million TPY. All environmental permits remain valid,
preliminary detailed engineering is complete, and the existing offtake agreement with Gujarat State
Fertilizers & Chemicals Limited remains in effect. Further development is dependent on the continued
strength of potash prices and obtaining financing.
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 that was commissioned in the year 2000, and two urea plants that were established in 1969, at its
fertilizer production complex in Vadodara, Gujarat State, India.
As the 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:
Danielle Favreau
Interim CEO
Karnalyte Resources Inc.
1(639) 638-2537
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.
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.sedarplus.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.