Opérations et transactions|7 mars 2013
Karnalyte Resources Inc. and Gujarat State Fertilizers & Chemicals Ltd. announce closing of private placement
Torys acted as counsel to Gujarat State Fertilizers & Chemicals with a team that included Michael Pickersgill, Ian Arellano and Will Hooper.
On March 7, 2013, Karnalyte Resources Inc. (Karnalyte) and Gujarat State Fertilizers & Chemicals (GSFC) announced the closing of their previously announced non-brokered private placement. As outlined in the January announcement, Karnalyte issued GSFC approximately 5,490,000 common shares of Karnalyte at a price of C$8.15 per common share for total gross proceeds of approximately C$44.7 million, the proceeds of which will fund the construction of the Wynyard Carnallite Project.
GSFC now holds a 19.98% ownership stake in Karnalyte.
The closing of the private placement also put into effect the off-take agreement, also outlined in the January announcement. Under the terms of the agreement, upon commencement of commercial production of Phase 1 of the Wynyard Carnallite Project, GSFC committed to buy 350,000 tonnes per year of potash from Karnalyte, increasing to 600,000 tonnes per year of potash as the project's capacity increases during Phase 2, for a period of approximately 20 years on a take or pay basis.
Gujarat State Fertilizers & Chemicals Limited is a publicly traded agribusiness company focusing on the production and sale of fertilizers and industrial products in India.
Karnalyte Resources Inc. is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products.
Further information can be found on Karnalyte's website.
GSFC now holds a 19.98% ownership stake in Karnalyte.
The closing of the private placement also put into effect the off-take agreement, also outlined in the January announcement. Under the terms of the agreement, upon commencement of commercial production of Phase 1 of the Wynyard Carnallite Project, GSFC committed to buy 350,000 tonnes per year of potash from Karnalyte, increasing to 600,000 tonnes per year of potash as the project's capacity increases during Phase 2, for a period of approximately 20 years on a take or pay basis.
Gujarat State Fertilizers & Chemicals Limited is a publicly traded agribusiness company focusing on the production and sale of fertilizers and industrial products in India.
Karnalyte Resources Inc. is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products.
Further information can be found on Karnalyte's website.