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Karnalyte Resources Paring Early Slide, Still Down 11% After Scrapping $115M Bought-Deal Financing

Karnalyte Resources Inc. (KRN.TO) appears to found a bottom today, halting its slide after falling over $2 a share to now trade at $11.08 a share, down $1.44, after the potash producer said it was scrapping a $115 million bought deal financing announced late last month.

The company said it was unable to file a short-form prospectus within the required timeframe following discussions with regulators over certain aspects of its reserve and resource estimates for the Wynyard Carnallite Project in Saskatchewan.

Despite withdrawing the current financing effort, Karnlyte said it remains committed to moving the Wynyard project ahead and will pursue alternative funding strategies, including debt or equity financing from the capital markets or strategic partners and cornerstone investors.

, Subsurface Mineral Permit KP 360A and Subsurface Mineral Lease KLSA 010, Saskatchewan, Canada" effective October 21, 2011. Karnalyte held discussions with the securities regulators to review these comments however, as a result of the delay, a final short form prospectus could not be filed in the required timeframe. Karnalyte remains 100% dedicated to moving the project forward.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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