Bbased on the recommendation of the Audit Committee, the Board of Directors of Gujarat State Fertilizers & Chemicals Ltd (GSFC) have decided to invest in the rights issue of Karnalyte Resources Inc. up to an amount not exceeding CAD 4.9 mn. equivalent to ~ Rs.31 crores.

Karnalyte Resources (KRN) is an advanced potash development/ mining company situated in Saskatchewan, Canada and listed on Toronto Stock Exchange since 2010. GSFC has made a strategic investment (presently holding 38.73%) in the project in 2013 to meet its potash requirements. The proposed rights issue is with an intent of syndicating finance to part finance its funding requirements of CAD 7-8 mn.

Karnalyte has raised the Rights Issue for 14,058,282 shares (ratio of 3:1 for existing shareholders) at a price of CAD 0.35 per share. The rights issue opened on 28th June'22 and the offering shall expire on 29th July'22.

With a view to meet its own requirements as well that of meeting the objective of Long Term Product Security under Atmanirbhar Objective of the Govt. of India, the Board of Directors of Company (upon recommendation of the Audit Committee), at its meeting held on 21st July,2022, has approved to subscribe the Right Issue of Karnalyte Resources.