Karnalyte Resources Inc. Announces Third Quarter 2017 Results and Provides Operations Update
KARNALYTE RESOURCES INC. ANNOUNCES THIRD QUARTER 2017 RESULTS AND
PROVIDES OPERATIONS UPDATE
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW–November 14, 2017) - Karnalyte Resources Inc. (" Karnalyte" or the
"Company") (TSX: KRN) today filed condensed unaudited interim financial statements and Management's
Discussion and Analysis (" MD&A") for the three months ended September 30, 2017 (the “ Third
Quarter”). The financial results of the Third Quarter are as follows:
A decrease in general and administrative expenses of $3,903,000 from the comparative 2016
amount;
A decrease in cash since June 30, 2017 of $1,083,000;
A decrease in trade and other payables liabilities since June 20, 2017 of $47,000.
As at September 30, 2017, the Company had net working capital of $7.8 million compared to $17.4 million
at September 30, 2016, including $8 million and $18.8 million, respectively, in cash. Karnalyte's Third
Quarter 2017 Financial Statements and MD&A are available at www.sedar.com.
“During the third quarter of 2017 the Company continued to prioritize the development of the Wynyard
Carnallite Project. While market conditions remain challenging, management and the board are working
hard to identify cost savings opportunities in capital, operating and financing costs of the Project. And they
are actively seeking opportunities to finance the project. Management and the board believe in the potential
of the Wynyard Carnallite Project and that its development will provide significant shareholder value.” said
Karnalyte’s interim Chief Executive Officer, W. Todd Rowan.
THIRD QUARTER UPDATE
In order to conclude the work done during the optimization program in 2016 (the “ Optimization
Program”), the following activities have been taking place at the Wynyard Carnallite Project site:
1. Cavern Testing – To gain an understanding of the final shape and conditions in the cavern, the
Company intends to take sonar and blanket oil level logs, and temperature readings in the test
cavern. The Company intends to deliver these logs to the Company’s consultant, ERCOSPLAN
Ingenieurgesellschaft Geotechnik und Bergbau mbH, for analysis and a final update to their report
on the Optimization Program.
2. Magnesium Testing - production brine containing MgCl2 was extracted from the Belle Plaine zone
in the test cavern and taken to the Saskatchewan Research Council for further testing. The aim was
to explore the potential of producing high purity 99% plus Magnesium Compounds in a variety of
specified formulations that could meet different industrial specifications. SRC completed the lab
processing work in September and will provide data from the tests. Karnalyte also intends to
perform an evaluation of the potential markets for MgCl 2 brine, Basic Magnesium Carbonate
(BMC) and MgO and to incorporate this into a final report.
3. Decommissioning 2016 cavern testing site – Karnalyte has largely decommissioned the site of the
Optimization Program in accordance with the operating permit from the Government of
Saskatchewan. All rental equipment has been returned and Company owned equipment and
material has been moved to the permanent storage yard. This cleanup also further prepares the site
for Phase I construction.
4. Disposal Well Temperature Log – To fulfill a condition of the licence for the disposal well, the
Company intends to carry out a routine temperature log in November to ensure that the continued
integrity of the well is being maintained. The work is also expected to open up the allowed two
disposal zones, increasing the well’s disposal capacity; some extra regulatory work is being done
to permit and secure the overall disposal system.
5. To comply with terms of the environmental impact statement, the Company has engaged a
consultant to prepare an updated decommissioning and reclamation plan for the overall Wynyard
Carnallite Project area.
ABOUT KARNALYTE RESOURCES INC.
Karnalyte is a Saskatchewan-headquartered company focused on exploration and development of potash
and magnesium in Saskatchewan. The Company intends to develop and extract a carnallite-sylvite mineral
deposit through a solution mining process, at a competitive cost and with minimal environmental impact.
Using a staged approach to potash and magnesium plant construction, the Company plans to operate the
initial facility at Wynyard, Saskatchewan to produce 625,000 tonnes per year (“TPY”) of potash (“ Phase
I”), increasing to 1,375,000 and 2,125,000 TPY of potash in subsequent phases of the project.
Karnalyte's Common Shares are traded on the TSX under the symbol KRN.
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 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 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.
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 Corporation assumes no obligation
to update or revise them to reflect new events or circumstances.
For further information, please contact:
Karnalyte Resources Inc.
1(306) 986-1486
www.karnalyte.com