Karnalyte Resources Inc. announces first quarter 2021 results

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Saskatoon, SK, May 14 2021 /CNW/-Karnalyte Resources Inc. (“Canalit“Or”the company“(TSX:KRN) Today announced its financial performance and company summary as of the first quarter March 31, 2021.

In the first quarter of 2021, the company focused on the activities surrounding the strategic review launched in 2020, including analysis, valuation and market research activities for the Wynyard potash project, review and analysis of the proposed nitrogen project (hereinafter referred to as “Proteos Nitrogen Project“), and in the company’s strategic partner Gujarat Fertilizer and Chemical Company (“GSFC“).

The company has been in contact with a number of potential partners in the Wynyard potash project. The company is also in contact with several potential partners in the Proteos nitrogen project. Discussions with these potential partners are ongoing. Management hopes to provide updated information on the conclusions of these discussions and strategic reviews in the coming weeks.

Potash-market update

Agriculture around the world is showing great strength, and strong crop prices have increased the demand for fertilizers. The recent moderate price increase indicates that the gap between supply and demand for potash appears to be narrowing. In general, given these factors and the overall optimistic outlook for the commodity, the prospects for potash price increases are optimistic. The company will continue to pay close attention to the global market situation of potash fertilizer.

Nitrogen-market update

Regarding nitrogen, global agricultural strength is strong, crop prices are firm, fertilizers can be afforded to growers, and global production interruptions have caused nitrogen prices to rise sharply. The company will continue to monitor the market situation of nitrogen fertilizers.

Outlook for 2021

In the second quarter of 2021, the company plans to complete the strategic review starting in 2020 and consolidate the company’s strategic direction. The company expects to announce its results in the next few weeks. The company also needs to spend time and financial resources in 2021 to deal with various lawsuits filed against the company.

2021 first quarter results

in March 31, 2021, The company has cash $3.3 million Hezheng’s net working capital 3.1 million USD And there is no debt. The company has enough cash to fund any existing commitments in 2021, as well as to meet short-term operating and capital requirements. The company is considering strategic options because the company’s ability to continue operations will require further stock issuance or other forms of financing. Canalite’s financial statements for the first quarter of 2021 and management’s discussion and analysis are available on the following website: www.sedar.com And on Karnalyte’s website www.karnalyte.com.

The following information is taken from the company’s condensed unaudited interim financial statements.

About Canalite Resources

Karnalyte Resources Inc. is a development stage company focusing on two products, potash fertilizer and nitrogen fertilizer, which will be produced and manufactured in Mexico. Saskatchewan. Karnalyte owns the Wynyard Potash Fertilizer Project which is already under construction. The annual output of the first phase is planned to be 625,000 tons (“TPY“) Advanced granular potassium fertilizer, and the subsequent two stages, each stage is 750,000 tons/year, and the total output can reach 21.25 million tons/year. 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 tons per day (“MTPD“) and about 1200 MTPD of urea, and the target customer market of independent fertilizer wholesalers Central Saskatchewan.

related Willard Potash Project

The Wynyard Potash Project is a ready-to-use solution mining potash project located in Australia Wynyard, SaskatchewanThe annual output of high-grade potash fertilizer is planned to be 625,000 tons in the first phase, and the annual output in the subsequent two phases is 750,000 tons, bringing the total output to 2.125 million tons. All environmental permits are valid, preliminary detailed works have been completed, and the existing off-take agreement with Gujarat Fertilizer and Chemical Co., Ltd. is still valid. Further development depends on the increase in potash prices and access to financing.

About the Protein Nitrogen Project

The Proteos Nitrogen Project is an advanced development project consisting of a proposed small nitrogen fertilizer plant located in Central SaskatchewanIts nameplate production capacity is about 700 MTPD of ammonia and about 1,200 MTPD of urea. It is designed to produce two products-anhydrous ammonia (82-0-0) and granular urea (46-0-0). Karnalyte’s main target market is an independent local market Saskatchewan Fertilizer wholesalers within a radius of 400 kilometers Saskatoon, Saskatchewan. The secondary target market is U.S. Midwest fertilizer wholesalers close to Canada – United States boundary.The proposed plant will be the first new nitrogen fertilizer plant in the United States Canada In the past 26 years.

About Gujarat Fertilizer Co., Ltd.

Gujarat Fertilizer and Chemical Co., Ltd. (“GSFC“) is a leading Indian Fortune 500 chemical and fertilizer company with a history of more than 50 years. GSFC currently operates an ammonia plant that was put into operation in 2000 and two urea plants established in 1969 on its fertilizers. Located at the production base in Vadodara, Gujarat, India.

As the company’s strategic partner and largest shareholder, GSFC has always been committed to the company and the Wynyard potash project, and fully supports the company’s pursuit of the development of the Proteos nitrogen project. GSFC also confirmed to the company that it will continue to support the construction of the most cost-effective financing plan for the development of the Wynyard potash project, because GSFC has been making offers to the company since becoming a shareholder in 2013.

Forward-looking statements

In accordance with applicable Canadian securities laws, certain information contained in this press release is forward-looking. Forward-looking information is usually, but not always, identified through the use of words such as “expects”, “believes”, “possible”, “estimates”, “expects”, “plans”, “intends”, and “forecasts.” , “Future”, “Guide”, “Maybe”, “Forecast”, “Project”, “Should”, “Strategy”, “Goal”, “Will” or similar words or phrases suggest future results or suggest prospects Language.

The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Karnalyte, including but not limited to the following assumptions: the estimated economic conditions of the company’s planned potash production facilities, and the independent feasibility study of Karnalyte’s potash fertilizer confirm. Regarding the technical and economic feasibility of the Proteos Nitrogen project, Karnalyte’s ability to obtain financing on conditions favorable to the company and Karnalyte’s assumptions on the ability to obtain the necessary approvals from the company’s board of directors, shareholders, regulators and other third parties in a timely manner.

Karnalyte believes that the expectations and assumptions on which the forward-looking information is based are reasonable. However, there is no guarantee that these assumptions and expectations will prove to be correct. Therefore, 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 content, readers are reminded that the company has not yet received a feasibility study on the Proteos Nitrogen project prepared by a third party.

Actual results may differ from the forward-looking information provided in this press release, and these changes may be material. Risk factors and uncertainties may cause actual results to differ from the forward-looking information in this press release. Other information about forward-looking statements and other factors that may affect Karnalyte’s operations and financial performance have been included in documents filed by the Canadian Securities Regulatory Agency and can be accessed through the company profile on the SEDAR website (www.sedar.com).

These forward-looking statements have been made as of the date of this article, and are fully and clearly defined by warning statements. Subject to compliance with applicable securities laws, the company is not obligated to update or revise them to reflect new events or new circumstances.

SOURCE Karnalyte Resources Inc.

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