Karnalyte Resources Inc. Releases Financial Results for the Year Ended 2016 and Announces Plans for Q1 and Q2 2017
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SASKATOON, March 16, 2017 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX: KRN) today announces 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 technical 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% MgCl2 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 sample 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.
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 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 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.
SOURCEKarnalyte Resources Inc.
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