A financial snag could derail a Saskatoon mining company's plan to build a potash mine near Wynyard.

Karnalyte resources says that a $700 million deal with Indian company Gujarat State Fertilizers fell through after they couldn't reach "certain fundamental terms."

In March the company stated that it would build the solution mine in three stages, with the first expected to produce 625,000 tonnes of potash every year.

Once complete they could produce 2.125 million tonnes per year.

They are hopeful it can still go forward and if Karnalyte does they can add as many as 300 construction jobs and between 80 and 90 permanent ones to the area's economy.

Construction was slated to begin in October.