Karnalyte tasks MNP to consider strategic options, review Proteos feasibility

28th July 2020 By: Marleny Arnoldi - Creamer Media Online Writer

TSX-listed Karnalyte Resources has engaged Canadian accountancy and business advisory MNP to advise the board on its long-term strategic direction.

The board initiated a strategic review process to evaluate a range of potential strategic alternatives available to it, including the evaluation of its existing and future projects and the analysis of potential financing alternatives, with a focus on determining what is in the best interests of Karnalyte and maximising value for all of its shareholders.

MNP has extensive experience in the potash and nitrogen industries, including in-depth knowledge of the Saskatchewan area, while Karnalyte owns the construction-ready Wynyard potash project, in Saskatchewan and is looking to develop the Proteos nitrogen project. 

In addition to assisting with the evaluation of strategic alternatives, MNP will provide an independent review of the prefeasibility study that Karnalyte completed on the Proteos project.

The project is a proposed small-scale nitrogen fertiliser plant with a nameplate production capacity of about 700 t/d of ammonia and about 1 200 t/d of urea.

Meanwhile, the company has appointed Christie Gradin interim CFO, effective July 27. She brings extensive expertise, business acumen and senior financial management experience, says Karnalyte.

She will provide support as the company navigates its strategic review process. Danielle Favreau continues to serve as interim CEO.

The board believes that maintaining interim CEO and CFO positions is appropriate until the strategic review process is completed and permanent appointments can be made based on the future needs of Karnalyte.

The company will hold a special meeting of shareholders on December 15 to address allegations against the company made by dissident shareholders – including former company directors Peter Matson, Greg Szabo and Mark Zachanowich.

The shareholders are calling for the election of four individuals to the board of directors.

Karnalyte, which held its annual general meeting a few weeks ago, said it was reviewing the latest dissident shareholder documents and would update shareholders in due course.