DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, May 23, 2018 /CNW
Telbec/ - Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTC: DRRSF) (FRANKFURT: JE9N), a
development-stage phosphate mining company, advancing the Lac à
Paul project in Quebec's
Saguenay-Lac-Saint-Jean region, reported its financial results for
the three-month period ended March 31, 2018. All amounts
are in Canadian dollars unless noted.
![Logo: Arianne Phosphate Inc. (CNW Group/Arianne Phosphate Inc.) Logo: Arianne Phosphate Inc. (CNW Group/Arianne Phosphate Inc.)](https://mma.prnewswire.com/media/695885/Arianne_Phosphate_Inc__Arianne_Phosphate_Reports_Corporate_and_F.jpg)
"The first quarter of the year has been a very busy one for our
Company," said Brian Ostroff, CEO of
Arianne Phosphate. "Year to date, Arianne has made steady progress
working with potential funders and partners for our project. As
well, we are also seeing the recovery in phosphate prices from
multi-year lows driving interest from potential offtakers.
Ultimately, we believe that with so few new projects coming
on-stream, our strong economics and our safe geopolitical
jurisdiction will all be very supportive in our mission to get the
Lac à Paul project developed and, unlock tremendous value for our
investors and stakeholders."
Q1 2018 Financial and Operational Highlights
- In March 2018, the Company
announced that it has received an investment from the Government of
Quebec by way of private placement
of $1,407,000 into the common shares
of Arianne. Under the terms of the offering, the Company issued
2,333,333 units at a price of $0.63
per unit. Each unit was comprised of one common share and one half
of one common share purchase warrant. Each warrant entitles its
holder to purchase one common share at a price of $0.85 per share until March 14, 2021.
- In March 2018, the Company
announced, the start of research and development work to integrate
aluminum in the design of the trailer that will transport the
phosphate concentrate from the Lac à Paul mine to the deep‑water
port that will be located in Sainte-Rose-du-Nord. The work will be done by
the National Research Council of
Canada (NRC) and Alcoa Innovation.
In order to carry out this major work, Arianne will be able to rely
on confirmed financial support from the Centre québécois de
recherche et de développement de l'aluminium (CQRDA) and the
Société de la vallée de l'aluminium (SVA).
- In January 2018, the Company
announced, the extension on the term of 1,217,500 common share
purchase warrants ("Warrants") issued as part of a private
placement which closed on July 29,
2013 for gross proceeds of $2,678,500. Each of the Warrants, which were part
of the units being issued, entitles its holder to purchase one
common share of Arianne (a "Common Share") at an exercise price of
$1.45 per Common Share until
January 27, 2018. Arianne has elected
to extend the expiry date of the Warrants to July 27, 2018. No other Warrant terms were
amended.
Highlights Subsequent to Quarter-End
In April 2018, the Company announced that it
received a grant of $1.5 million from
the Ministry of Energy and Natural Resources of Quebec. This funding has been provided as part
of the Government's plan to help advance the Quebec phosphate (apatite) sector. Arianne
will be using this funding in support of its previously announced
program to produce additional high-purity phosphate concentrate to
fulfil demand from potential customers and, to conduct further
pilot-scale tests. The tests will be conducted at COREM (Research
Consortium for the Treatment and Processing of Mineral Substances)
in Quebec City, where the Company
conducted its previous pilot-scale tests, and, materials will be
sent to parties that have expressed a strong interest in pursuing
some form of offtake and/or a strategic partnership with
Arianne.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q1 2018. In the first quarter ended March 31, 2018, the Company incurred net losses
of $0.7M for the three-month period.
This compares to a net loss of $0.8M
for the three-month period of 2017.
Liquidity
At March 31,
2018, the Company had $1.17M
cash on hand. These funds will be allocated towards general working
capital and advancing development of Lac à Paul in 2018. Based
on current spending estimates for future project development,
Arianne will need additional financing in 2018.
Outlook
Through the rest of 2018, Arianne will be
focused on the ongoing advancement and development of its Lac
à Paul project. Expected milestones include:
- Secure financing for construction and development of the Lac à
Paul project;
- Continue optimization of the Lac à Paul project including
reducing cash operating production costs and capital expenses;
- Sign an "Impact and Benefit Agreement (IBA)" with the First
Nations; and
- Assist the Port of Saguenay in securing their environmental
permitting from CEEA.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three‑month
period ended March 31, 2018 are
available on the Company's website and on SEDAR at
www.sedar.com.
Qualified Person
Jean-Sébastien David, P.Geo.,
Qualified Person by NI 43-101, has approved this release. Mr. David
is also the Company's Chief Operating Officer.
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 105,803,943 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
Cautionary Statements Regarding Forward Looking
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"). Forward-looking information
includes, but is not limited to, anticipated quality and production
of the apatite concentrate at the Lac à Paul project. 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. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: volatile stock price; risks related to changes in
commodity prices; sources and cost of power facilities; the
estimation of initial and sustaining capital requirements; the
estimation of labour and operating costs; the general global
markets and economic conditions; the risk associated with
exploration, development and operations of mineral deposits; the
estimation of mineral reserves and resources; the risks associated
with uninsurable risks arising during the course of exploration,
development and production; risks associated with currency
fluctuations; environmental risks; competition faced in securing
experienced personnel; access to adequate infrastructure to support
mining, processing, development and exploration activities; the
risks associated with changes in the mining regulatory regime
governing the Company; completion of the environmental assessment
process; risks related to regulatory and permitting delays; risks
related to potential conflicts of interest; the reliance on key
personnel; financing, capitalization and liquidity risks including
the risk that the financing necessary to fund continued exploration
and development activities at Lac à Paul project may not be
available on satisfactory terms, or at all; the risk of potential
dilution through the issue of common shares; the risk of
litigation. Forward-looking information is based on assumptions
management believes to be reasonable at the time such statements
are made, including but not limited to, continued exploration
activities, no material adverse change in commodity prices,
exploration and development plans proceeding in accordance with
plans and such plans achieving their stated expected outcomes,
receipt of required regulatory approvals, and such other
assumptions and factors as set out herein. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue reliance
on forward-looking information. Forward-looking information is made
as of the date of this press release, and the Company does not
undertake to update such forward-looking information except in
accordance with applicable securities laws.
SOURCE Arianne Phosphate Inc.