User:999MgO/Karnalyte Resources Inc.

Karnalyte Resources Inc.
Karnalyte Resources Inc. (KRN-TSX) is a company engaged in the development of a carnallite resource in Eastern Saskatchewan near the town of Wynyard. The company will use a solution mining process to extract the potassium and magnesium value from the carnallite [link]. Its products will include potash prills for agriculture, high grade industrial potash and magnesia products (magnesium compounds). The Karnalyte Property is located 0.5km to the south of Highway 16 near the town of Wynyard, Saskatchewan, and is accessible and serviced by a railway line and a network of roads. Karnalyte Resources owns a 100% interest in Permit KP 360 and Subsurface Mineral Lease KLSA-010, comprising a total of 85,126 acres. Karnalyte’s Wynyard Carnallite Project has a dominant zone of carnallite (KCl•MgCl2•6(H20)) and sylvite (potassium-bearing minerals). (a photo of potash prills is available on the Karynalyte website)

Location
The plant site will be near the town of Wynyard Saskatchewan. Company offices, pilot plant and laboratory facilities are now located in the city of Okotoks, Alberta. As of March 2011 at the plant site there are production and test wells, storage buildings and offices. The company also owns property in the town for loading facilities on the railway line and highway. (insert ref link here)

Proven resources
On February 28, 2011 the company announced that the Government of Saskatchewan's Ministry of Energy and Resources has approved the conversion of 16,825 acres of Karnalyte's Permit KP 360 area to a Subsurface Mineral Lease (KLSA-010). The Lease enables Karnalyte to proceed with the commercial development of potash mineral resources in the area. The remaining 68,301 acres will continue to be held by Karnalyte under Permit KP 360 and will be available for conversion into leases at appropriate future dates. The lease will define the area for the development of the Environmental Impact Statement and feasibility study for the production of potash, with an expected initial volume of 500,000 tonnes per year, expanding to 2 million tonnes over 6 years.

Process, Pre-project and engineering
At other locations, potash is produced from carnallite. One is at the Dead Sea and by solution mining. From available information it appears that the proposed plant will use “tried and true” technology. [reference] The Company intends to construct and operate a solution mining facility capable of producing 2 million m tons of potash per year. The production plan calls for a staged approach to plant construction whereby the first phase of the project will result in production of 500,000 m tons of potash per year, ultimately increasing to 2 million tonnes of potash per year within 6 years of initial production.ii Foster Wheeler, will lead the Engineering Feasibility Study, in conjunction with GeoEngineers Inc. and ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau GmbH  Note: See illustration of solution mining from slide 8 of this referance.

History
The company was founded in 2006 (reference needed) by professionals that left or retired from existing potash producers in Saskatchewan and others with extensive experience in marketing agricultural products, industrial minerals, chemical raw materials, finance, management, chemical engineering and geology.

Finance
The IPO was launched Dec 14, 2010 at a share price of C$8.60. (insert reference link here) (6,975,000 common shares at a price of $8.60 per share for gross proceeds of $59,985,000 (the "Offering"). The common shares are listed on the Toronto Stock Exchange and are trading under the symbol "KRN". The Corporation intends to use the net proceeds of the Offering for further development of its Wynyard Carnallite Project (the "project"), including: a feasibility study; work  on the project's environmental impact assessment; further geological analysis; additional exploration seismic and drilling; infrastructure preparation and equipment deposits; and for general corporate purposes.)

Management
Administration Robin L. Phinney, P. Eng., President, Chief Executive Officer and Director Ronald Love, CA,Vice-President, Finance, Chief Financial Officer and Director Julius Brinkman, Vice-President, Corporate Development Siu Ma, MBA, P. Eng., Vice-President, Engineering, Research and Development Robert T. Macgillivray, Vice-President, Marketing Henry Kerkhoven, MBA, PMP, Vice President, Administration Board of Directors Bruce Townsend, Chairman Ian Brown, CA, Director Mark Wayne, Director Paul Sharpe, Director Robin Phinney, President & CEO Ronald Love, CFO & VP Finance