Wynyard
Photo by: Karnalyte Resources
TORONTO (miningweekly.com) – TSX-listed potash project developer Karnalyte Resources on Thursday achieved another step forward to bring its Wynyard carnallite project, in Saskatchewan, to fruition, after announcing that it had received the water rights licence to use ground water (WRL) and the approval to operate works (ATO) for the source water well from the Saskatchewan Water Security Agency.
The WRL granted the corporation the right to withdraw brackish ground water from the Blairmore formation to support the project.
“Karnalyte successfully tested a full production-capacity disposal well and a production-size source water well earlier this year, demonstrating sufficient source water deliverability for the first-phase production facility. Receipt of the WRL and ATO support an acceptable environmental footprint,” Karnalyte president and CEO Robin Phinney said in a statement.
Karnalyte said it continued to monitor the capital markets for opportunities to access capital to support the construction of the first phase of the project.
The company, which is preparing to start construction of its C$626-million project, is currently on the lookout for another partner, or other investors, to secure more financing to complete the project. CFO Ron Love recently told Mining Weekly Online that the company would probably need to secure another C$75-million to C$100-million to move on with construction.
Karnalyte’s stock on Thursday closed up 2.22% at C$1.38 apiece.