VADODARA, INDIA--(Marketwired - Oct. 4, 2016) - Gujarat State Fertilizers & Chemicals Limited ("GSFC") confirms the issuance of 555,555 common shares (the "Adjustment Shares") of Karnalyte Resources Inc. ("Karnalyte" or the "Company") pursuant to the terms of the subscription agreement dated January 10, 2013 (the "Subscription Agreement") between GSFC and Karnalyte.
On March 7, 2013, GSFC acquired 5,490,306 of the issued and outstanding common shares (the "Shares") of Karnalyte at a price of $8.15 per Share in a non-brokered private placement pursuant to the Subscription Agreement. The issue price was subject to an adjustment if commercial production had not commenced at the Company's potash mine at Wynyard, Saskatchewan (the "Wynyard Project") on or before October 1, 2016, which would be satisfied by the issuance of the Adjustment Shares by Karnalyte to GSFC at that time.
Commercial production has not commenced at the Wynyard Project resulting in the issuance on October 1, 2016 of the Adjustment Shares to GSFC, representing approximately 2.2% of the outstanding Shares. Immediately prior to the issuance of the Adjustment Shares, GSFC owned, directly and indirectly, or exercised control or direction over 5,490,306 Shares, representing approximately 19.98% of the then outstanding Shares. Upon issuance of the Adjustment Shares, GSFC owns, directly and indirectly, or exercises control or direction over 6,045,861 Shares, representing approximately 22.0% of the outstanding Shares.
GSFC acquired the Shares for investment purposes as a long-term strategic investor. Subject to applicable regulatory and contractual restrictions, GSFC may from time to time dispose of, or acquire, additional securities of Karnalyte.
Karnalyte's head office is located at 3150B Faithfull Avenue, Saskatoon, Saskatchewan, S7K 8H3.
GSFC will file a report under National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues under the Company's profile on SEDAR (www.sedar.com) containing additional information respecting the foregoing matters. For further information or to obtain a copy of the report, please contact the person listed below.
GSFC is a professionally managed organization with a net worth of approximately 725 Mn USD. The Government of Gujarat is its largest single shareholder and Mr. A. M. Tiwari, an experienced bureaucrat from the Indian Administrative Services, with remarkable credentials is at its helm. It has been in existence and operations for almost 60 years and has been commended for several path breaking achievements in implementing large scale industrial projects.