DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, Sept. 2, 2014 /CNW/
- Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE:
DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage
phosphate company advancing the Lac à Paul Phosphate Project in
Quebec's Saguenay region today is
announcing changes to its management personnel as it moves its Lac
à Paul project through its next phase of development. These
changes are being introduced to further focus the Company on its
next major milestones. These primary milestones are:
permitting; First Nations; improvements to OpEx/CapEx; and securing
a strategic partner.
As these milestones are pursued, Brian
Kenny has requested that his focus be exclusively aimed at
reducing both Capex and Opex which includes optimizing the
transportation plan. Although able to address this during his
tenure as CEO, other responsibilities that came with the CEO office
did not allow him the time required to fully focus on such an
important part of moving the project forward.
"I think we have a great project here and believe that my
efforts are best served in my main area of expertise and, where I
can have the greatest impact," Mr. Kenny stated. "I look
forward to continue working with the team and allowing us to finish
the goal we have set; to see a world class phosphate mine operating
here in Quebec."
As a result of Mr. Kenny's primary focus, the belief was that
the CEO title was no longer applicable and Mr. Kenny has thus
chosen to resign the title. Mr. Kenny will be staying with
the Company as a consultant. The other responsibilities that
had fallen to him as CEO such as administrative, financial
strategy, investor and community relations will be reallocated to
others within the management team.
Many of these redistributed responsibilities will fall directly
to Arianne's current Chief Operating Officer Jean-Sebastien David. Already a senior
member of the management team, Mr. David was involved in large part
with many of the operations of the Company. By being based in
Chicoutimi, Mr. David knows all of
the staff, many of the local officials, government officials and
members of the First Nations communities and, has interacted
regularly with them over the last few years since his original
appointment to the Company.
"Having had similar responsibilities in past, I have seen
firsthand what is required to get projects permitted and built,"
Mr. David said. "Originally from the region, I am also very aware
of what this mine means to the community. I look forward to the
challenges that lie ahead and we [Arianne] will do everything we
can to see this project happen."
Supporting Mr. David's expanded role, Mr. Pierre Fitzgibbon will become Executive Chairman
of Arianne, allowing him to play a more active role in the
financial and strategic initiatives of the Company. Mr.
Fitzgibbon sits on the board of several publically traded companies
and has served in many senior positions including CFO for the
National Bank of Canada, Vice
Chairman of Investment and Corporate Banking at National Bank
Financial and sat on the Board of the Caisse de Dépôt et Placement
du Quebec, a $200 billion pension
fund. Most recently, Mr. Fitzgibbon served as CEO of Atrium
Innovations, a company acquired early this year for over
$1 billion.
"I look forward to being more personally involved with Arianne
and supporting the team as required," said Mr. Fitzgibbon.
"This move is well timed following my transition out of Atrium and
gives me the ability to use my skills and contacts towards what
should be another Quebec success
story."
Arianne has also named Dino Fuoco
as its new Chief Financial Officer. Mr. Fuoco is a graduate
of the University of Montreal and comes
with 30 years experience in business management. Mr. Fuoco
has served as an officer in several large enterprises including
John Labatt (now a division of
Anheuser-Busch InBev), Provigo (now a division of Loblaw Companies
Limited) and Alliance Forest Products Inc. (later acquired by
Bowater Canada). In addition to his activities in the private
sector, Mr. Fuoco has also served in senior positions with
government organizations including Executive Vice-President and CFO
of the Société Général de Financement du Quebec and has been a
Board member of Hydro-Quebec Capitech (venture capital).
"I look forward to my new role at Arianne Phosphate," commented
Mr. Fuoco. "I see many similarities to past roles I have
played, helping a Company go through the steps of becoming a major
factor in their industry, either alone or as part of a larger
structure."
These changes are effective immediately and are part of
Arianne's strategy to advance its project.
"These moves allow those at the Company to focus on their key
areas of expertise, whether they be operational, permitting, cost
cutting/project optimization or financial," said Mr.
Fitzgibbon. "All the pieces are there and this alignment of
responsibilities should allow us to achieve our goals as quickly
and efficiently as possible."
These changes come about on the back of a very successful six
months at Arianne which has seen the Company increase inferred
resources, identify potential new zones, lower its projected
operating costs and secure a favorable power agreement with Hydro
Quebec. These advancements have also occurred at a time when
the uncertainty surrounding many countries involved in phosphate
rock production have increased and the world will continue to look
for stable and reliable production.
Second Quarter Corporate and Financial Results
Arianne reported its corporate and financial results for the
second quarter ended June 30, 2014.
Arianne's Management Discussion and Analysis (MD&A) and
Financial Statements for the quarter are available on the Company's
website and on SEDAR at www.sedar.com .
"We are pleased with the success of our second quarter,"
commented Jean-Sebatien David, COO of Arianne. "Amongst other
highlights, the success of our July financing demonstrates
continued support from our leadership team and existing
shareholders towards the development of our world-class Lac à Paul
Project. It provides us with the necessary capital to
continue timely project advancement, including activities essential
to securing the environmental permit and further project
optimization. Our continued commitment to defining Lac à
Paul's upside potential and strengthening the Project's economics
was evident in the second quarter of 2014."
Mr. David added, "We fortified Lac à Paul's already robust
economics by securing a favorable power agreement with the Quebec
Government and our metallurgical work has lowered our production
cost for phosphate concentrate which will result in a significant
cost savings over the mine life."
Q2 2014 Corporate & Financial Highlights
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Announced winter 2014
drilling results, including the:
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Addition of 78Mt of
inferred resource at 5.34% P2O5 at the Nicole Zone
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Identification of a
new potential target zone in the range of 260Mt - 390Mt with grades
ranging from 5.34% to 7.13% P2O5
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Announced preliminary
results from metallurgical optimization tests which concluded that
Arianne will be able to realize significant cost savings over the
26-year mine life. By eliminating two reagents from its production
of phosphate concentrate, Arianne will be able to lower per tonne
production cost thus bringing down our overall OpEx.
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Secured favourable
power agreement with the Ministry of Energy and Natural Resources
in Quebec which gives the Lac à Paul Project a preferential and
reduced power rate during the construction and operation of Lac à
Paul
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Completed sale of its
non-core Opinaca and Black Dog properties, which is consistent with
its corporate strategy to focus on Lac à Paul's
development;
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Post – Q1 2014 Highlights
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Announced drilling
results from TraMan and Traverse Zones:
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Addition of 146Mt of
inferred resource at 5.30% P2O5 at the TraMan Zone
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Addition of 17Mt at
5.98% P2O5 at the Traverse Zone
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Announced the closing
of a first tranche of a private placement which raised gross
proceeds of $5,631,000. A second tranche of $2,369,000 is expected
to close in September for total gross proceeds of up to $8,000,000
(refer to the press release dated July 31, 2014 for full
details).
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Financial Summary
In Q2 2014, Arianne did not
generate revenue or positive cash flows as the Company is still a
development-stage entity. In the three months ended June 30, 2014, the Company incurred a net loss of
$1,639,487 compared to a loss of
$1,508,003 in the same period in the
2013. The Company's net loss and cash burn are consistent with its
budget.
Liquidity
At quarter-end, the Company had $2,108,307 of cash on hand and working capital of
$706,818, which includes $615,388 in cash reserved for exploration and
evaluation expenses. The Company's working capital will be
allocated towards completing critical project development work in
2014.
In addition, since July 1, 2014,
the Company has received net proceeds of $5.1 million from the first tranche of the
$8 million financing announced in
July (see press release dated July
31, 2014.) Based on current estimates for future
project development, Arianne anticipates it will need additional
financing in 2015.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.")
(www.arianne-inc.com) is developing the Lac à Paul phosphate
deposits located approximately 200 km north of the Saguenay/Lac St.
Jean area of Quebec, Canada. These
deposits will produce a high quality igneous apatite concentrate
grading 39% P2O5 with little or no contaminants. The Company has
92,868,755 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Follow Arianne on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing News:
http://resourceinvestingnews.com/?s=Arianne
Forward Looking Statements and Information
This news release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
securities regulations in Canada
and the United States
(collectively, "forward-looking information"). The forward-looking
information contained in this news release is made as of the date
of this news release. Except as required under applicable
securities legislation, the Company does not intend, and does not
assume any obligation, to update this forward-looking information.
Forward-looking information includes, but is not limited to,
anticipated effect of the additional metallurgical tests on the
Project, and timing and expectations of future work programs.
Often, but not always, forward-looking information can be
identified by the use of words such as "plans", "expects, "is
expected", "budget", "scheduled", "estimates", forecasts",
"intends", "anticipates", or "believes", or the negatives thereof
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might", or
"will" be taken, occur or be achieved. Any forward-looking
statement speaks only as of the date on which it is made and except
as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking
statement.
SOURCE Arianne Phosphate Inc.