Topic: How To Invest

Pat: Could you please comment on Karnalyte Resources Inc.? It came on the Toronto Stock Exchange in December of last year. Thanks.

Article Excerpt

Karnalyte Resources, $12.90, symbol KRN on Toronto (Shares outstanding: 20.5 million; Market cap: $269.5 million; www.karnalyte.com), hopes to complete a feasibility study on its Wynyard Carnalite potash project in Saskatchewan by the end of 2011. If the study is positive, the company aims to build a mine at the site. The first phase would produce 500,000 tonnes of potash a year, but the mine could be expanded to 2 million tonnes a year. Karnalyte is also examining the possibility of producing magnesium chloride during the mining process. A mine would take anywhere from 24 to 30 months to build. Magnesium chloride is used to make magnesium compounds. These compounds are used for many things, including raw materials for the steel and cement industries; mineral supplements for livestock; additives and fillers for rubber and other polymers; and in the pulp and paper industry. Karnalyte plans to use solution mining to extract potash (and potentially magnesium) at its proposed mine. This process involves using…

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