DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 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 and six-month period ended June 30, 2018. All
amounts are in Canadian dollars unless noted.
"We continue to move our project towards development," said
Brian Ostroff, CEO of Arianne
Phosphate. "Since the beginning of the year, the industry has
rebounded from a five-year slump with phosphate prices now up about
25% year to date. This change in macro coupled with Arianne's own
advancements, has been very helpful in our negotiations with
offtakers, financiers and partners and, we continue to see very
tangible interest and support for our Lac à Paul project."
Q2 2018 Financial and Operational Highlights
- 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.
Highlights Subsequent to Quarter-End
- In August 2018, the company
announced that it has partnered with the Province of New Brunswick to further its review of
constructing a phosphoric acid plant in Belledune, New Brunswick. As part of this
agreement, the Government, through Opportunities New Brunswick
("ONB"), will provide a financial contribution toward the cost of a
prefeasibility study, the next step in Arianne's assessment of its
downstream opportunity.
- In August 2018, the company
announced hat it entered into a Memorandum of Understanding ("MoU")
for the supply of sulphuric acid. Aside from phosphate rock, a
phosphoric acid plant would also require a supply of sulphuric acid
that could be consistently delivered in timely fashion. It is on
this basis, that Arianne has entered into an MoU with a large
marketer of sulphuric acid.
- In July 2018, the company
announced that Arianne shareholders have reelected Messrs.
Dominique Bouchard, Brian Ostroff, James
Cowley, David DeBiasio,
Marco Gagnon, Siva Pillay and
Steven Pinney as directors of the
Company during the Annual General Meeting of Shareholders of the
Company held on July 10, 2018 in
Montreal.
- On July 12, 2018, the Company
extended the term of 2,815,500 common share purchase warrants
issued as part of a private placement closed on July 31, 2014 for a gross proceed of $5,631,000. Each warrant, as part of the issued
units, entitles its holder to purchase one common share of the
Company at an exercise price of $1.25
per common share until July 31, 2018.
The Company has elected to extend the expiry date of the warrants
to July 31, 2019. No other term will
be amended.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q2 2018. In the second quarter ended June 30, 2018, the Company incurred net losses of
$0.2 for the three-month period and
$0.9M for the six-month period. This
compares to a net loss of $0.8M for
the three-months and $1.6M for the
six-months period in the comparable periods of 2017.
Liquidity
At June 30,
2018, the Company had $1.59M
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 June 30, 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 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.