UPDATE: Karnalyte Resources Up 10%, But Well Off Day Highs On Ties With Gujarat State Fertilizers & Chemicals
Karnalyte Resources Inc. (KRN.TO) is up more than 10% at $8.84 but is well off a day high $9.65.
Today, Karnalyte and Gujarat State Fertilizers & Chemicals Limited, a publicly-traded Indian agribusiness company focused on the production and sale of fertilizers and industrial products, announced today that: GSFC will make a strategic investment of approximately $45 million in Karnalyte at a price of $8.15 per common share of Karnalyte, which will result in GSFC holding a 19.98% ownership stake in Karnalyte; and Karnalyte and GSFC have agreed to a committed off-take agreement for the purchase of approximately 350,000 tonnes per year of potash from Phase 1 of Karnalyte's Wynyard Carnallite Project, increasing to 600,000 TPY with the commencement of Phase 2. The off-take agreement will continue for approximately 20 years from the commencement of commercial production of Phase 1.
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