Shakeup at Karnalyte after Wynyard mine stalls

Ten months after its plan to build a potash mine near Wynyard stalled following the collapse of a $700 million financing deal, Karnalyte Resources Inc. has parted ways with its founder and longtime president.

The Saskatoon-based junior miner announced Robin Phinney’s departure in a terse news release Wednesday night, just over a month after the veteran engineer failed to secure re-election as one of its directors.

“Effective immediately, Mr. Robin Phinney, president, is no longer with the company,” the news release stated. “The company will make an announcement on plans to replace Mr. Phinney as soon as such information is available.”

The release did not explain the circumstances surrounding Phinney’s departure. Karnalyte interim chief financial officer Danielle Favreau said Thursday morning that she could not comment further. Phinney could not be reached for comment.

Karnalyte’s plan to build the mine southeast of Saskatoon launched into high gear last year, after it announced an agreement in principle with Gujarat State Fertilizers and Chemicals Ltd. (GSFC), which in 2013 invested $44.7 million in the company.

Under the terms of the deal, GSFC would underwrite the cost of building the mine’s first phase and buy 56 per cent of its production for 20 years in exchange for a temporary 51 per cent voting stake in the company.

Phinney said at the time he could have “dirt flying” in the fall of 2016, but that changed last summer when Karnalyte announced that the companies were “unable to reach an agreement on certain fundamental terms” of the deal.

According to corporate filings, Karnalyte is forging ahead with its plan to develop its Wynyard potash project.

Shares in the company, which traded for just over $17 in 2011, closed at $0.61 on Thursday.