Gujarat State Fertilizers & Chemicals buys about 5.49 million shares
By Devika Patel
Knoxville, Tenn., March 7 - Karnalyte Resources Inc. said it raised about C$44.7 million in a non-brokered private placement of stock with Gujarat State Fertilizers & Chemicals. The deal priced for about C$45 million on Jan. 10.
The company sold about 5.49 million common shares at C$8.15 apiece, a 1.88% premium to the Jan. 9 closing share price of C$8.00 and is also based on a 20% premium to the volume weighted average price of the shares for the 20 trading days ended Dec. 20, the company said in a press release.
"In addition to putting the off-take agreement into effect, the closing of the private placement represents a significant step toward obtaining the total funding required to enable construction of the Wynyard Carnallite Project," president and chief executive officer Robin Phinney said in a press release. "This agreement is a testament to the superior quality of Karnalyte's potash product, and the partnership with Gujarat State Fertilizers & Chemicals will provide us with product marketing and distribution support in the Indian marketplace."
The Calgary, Alta., company explores for agricultural and industrial potash and magnesium products.
| Issuer: | Karnalyte Resources Inc.
|
| Issue: | Common shares
|
| Amount: | C$44.7 million (approximate)
|
| Shares: | 5.49 million (approximate)
|
| Price: | C$8.15
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investors: | Gujarat State Fertilizers & Chemicals
|
| Pricing date: | Jan. 10
|
| Settlement date: | March 7
|
| Stock symbol: | Toronto: KRN
|
| Stock price: | C$8.00 at close Jan. 9
|
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