Karnalyte Resources Inc. Provides Update on Annual Filings and Management Cease Trade Order Application
CALGARY, ALBERTA--(Marketwired - Apr 6, 2015) - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX:KRN) announced today that on April 1, 2015 the Alberta Securities Commission granted Karnalyte's application for a management cease trade order (the "MCTO"), as contemplated by Karnalyte's news release dated March 23, 2015. The MCTO restricts all trading in securities of the Corporation, whether direct or indirect, by the Chief Executive Officer and Chief Financial Officer of the Corporation. The MCTO will be in effect until the Corporation's financial statements and accompanying certificates, and management's discussion and analysis for the year ended December 31, 2014 (collectively, the "Required Filings") are filed or until the MCTO is revoked or varied.
The Corporation continues to anticipate that it will be in a position to remedy the default and make the Required Filings on or before April 14, 2015.
The delay in completing the Required Filings is necessary because of discussions to obtain financing for the construction of the Wynyard Carnallite Project. The outcome of these discussions will likely have significant impacts on certain accounting disclosures, particularly with respect to the carrying value of the Corporation's Wynyard Carnallite project. There can be no assurance that the financing discussions will result in a financing proposal or that any such proposal will be completed so as to allow the commencement of construction of the Wynyard Carnallite project.
The Corporation has not taken any steps towards any insolvency proceeding and the Corporation has no material information to release to the public.
About Karnalyte Resources Inc.
Karnalyte is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products. Karnalyte intends to develop and extract a carnallite - sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impacts. Once financing is obtained to potash plant construction, the Corporation plans to operate a solution mining facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year. Karnalyte owns a 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan, comprising a total of 85,126 acres.
Forward-Looking Statements
This press release contains forward-looking statements. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Karnalyte, including with respect to the Corporation's future operations and its ability to secure additional financing. Although Karnalyte believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Karnalyte can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the timing for filing the Required Filings, failure to obtain necessary financing, risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these 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 SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Karnalyte undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contact
Investors:
Ron Love, Executive Vice-President Finance
& Chief Financial Officer
(403) 995-6560
info@karnalyte.com
www.karnalyte.com
Media:
Joel Shaffer
Longview Communications
416-649-8006