Karnalyte Resources Inc. Releases Financial Results for the Year Ended 2016 and Announces Plans for Q1 and Q2 2017
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Karnalyte Resources Inc. Releases Financial Results for the Year Ended 2016
and Announces Plans for Q1 and Q2 2017
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK ( CNW- March 16, 2017 ) – Karnalyte Resourc es Inc. (“ Karnalyte” or the
“Company”) (TSX: KRN) today announce s that Karnalyte’s board of directors (the “ Board”) has
determined the Company’s plans for the first and second quarters of 2017. The Board has approved an
annual budget for 2017 of approximately $4.85 million for the year which includes cavern testing in the
Belle Plaine zone and research and development work on magnesium products.
Cavern Testing
In 2017, the Company plans to measure the brine concentration and temperature in the Belle Plaine
cavern with the aim of further matching actual operating conditions to the ERCOSPLAN laboratory work
and verifying their modeling. This will assist in improving the future detailed engineering design and
optimizing Karnalyte's capital and operating economics. Further testing in the Patience Lake Member and
the development of a dual -well cavern will not be undertaken at this time. The Board has budgeted
$200,000 for this work.
Magnesium Development
The Company's t echnical report filed on July 15, 2016 includes updated estimates for capital and
operational expenditures for the processing of the potash plant endbrine to 100,000 tons per year (“TPY”)
of MgCl2 brine at 32% MgCl 2 concentration and 104,000 TPY of 99% pure hydromagnesite product. In
relation thereto, in 2017 the Company intends to contract a third party for a bench testing program to
further verify Karnalyte’s process and produce and analyze the characteristics of s ample amounts of
hydromagnesite from Karnalyte’s cavern brine.The Board has budgeted $500,000 for this work.
2016 Year End Results
As at December 31, 2016 the Company had net working capital of $15.4 million compared to $26.2
million at December 31, 2015, including $16.8 million and $27.7 million, respectively, in cash.
Karnalyte's 2016 Year End Financial Statements, Management's Discussion and Analysis and Annual
Information Form are available at www.sedar.com.
For further information, please contact:
Robin Phinney, President
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”,
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“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 Karn alyte 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.
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 hereo f 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.