DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTCQX (USA)
SAGUENAY, QC, Oct. 10,
2024 /CNW/ - Arianne Phosphate (the "Company" or
"Arianne") (TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a
development-stage phosphate mining company, advancing the Lac à
Paul project in Quebec's
Saguenay-Lac-Saint-Jean region is pleased to announce that it has
received financing by way of an unsecured convertible debenture
from a global mining company (the "Strategic Investor"). Arianne
owns the fully permitted Lac à Paul phosphate mining project and is
currently advancing work on its proposed downstream phosphoric acid
project. The proceeds received from the financing will be used to
advance the Company's work on the downstream facility to better
quantify the opportunity. The economic benefits of the downstream
facility are driven by the conversion of regionally sourced igneous
phosphate concentrate into a highly sought downstream product that
requires additional supply, particularly originating outside of
China.
"This is a significant step forward for the project and the
Company," said Brian Ostroff,
President of Arianne Phosphate. "This investment comes from a group
that has the skill-set to help advance the project and provide us
with a catalyst to aggressively move forward. In addition,
demonstrating the ability to attract this investment can facilitate
the project's advancement and help accelerate discussions with
other parties that have expressed a strong interest in the project
or shown interest in certain aspects of the project such as
receiving product. This investment is a big plus for Arianne, its
stakeholders, investors and the Saguenay region."
Investment Terms
Under the terms of the investment, the Strategic Investor
purchased a convertible debenture in the principal amount of
approximately C$3.8 million, that
matures in three years and bears interest at 9.5% per annum.
Interest payments are added to the principal amount of the
convertible debenture, and as a result, no amounts are required to
be repaid by Arianne until the maturity of the instrument. The
Strategic Investor has the option, at any time and subject to
customary adjustments, to convert (i) the principal amount of the
convertible debenture at a price of C$0.35 per common share, and (ii) the accrued
interest thereon at a price per share equal to the greater of (a)
C$0.35 and (b) the market price at
the time the accrued interest is converted, as determined in
accordance with the rules of the TSX Venture Exchange. Upon the
Strategic Investor reaching an ownership of at least 3.0% of the
issued and outstanding common shares of Arianne (either through
conversion, open market purchase or otherwise), the Company will
enter into an investor rights agreement with the Strategic Investor
that will provide customary participation and top-up rights and a
board nomination right.
The investment remains subject to the final acceptance of the
TSX Venture Exchange. The convertible debenture purchased by the
Strategic Investor is subject to a four-month hold period under
applicable Canadian securities laws ending on February 11, 2025.
Downstream Production
The proceeds from the investment will be used to advance the
Company's previously announced intention to build and operate a
downstream purified phosphoric acid ("PPA") plant. As highlighted
in the preliminary study, Arianne is looking to construct a
facility in the Saguenay region of Quebec, Canada that would convert regionally
produced phosphate concentrate into PPA. The two grades of
phosphoric acid that would be produced at the facility are a very
high-purity PPA known as "white acid", used in the production of
lithium-iron-phosphate (LFP) batteries and direct food additives
and, a second-tier phosphoric acid used in the production of
specialty fertilizers and animal feeds. The facility would look to
produce 350,000 tonnes annually of high-purity PPA and 220,000
tonnes of the second-tier phosphoric acid, making it a substantial
Western producer of battery and food-grade PPA. Some of the
benefits associated with the proposed facility include: easy access
to premium phosphate concentrate, pre-existing logistics,
beneficial ESG characteristics and strong economics.
In closing, Raphael Gaudreault,
Arianne's Chief Operating Officer added "this investment continues
to demonstrate the interest and opportunity in critical minerals in
general, and our project in particular. The West has come to
understand the importance of diversifying away from China when it comes to supply chains and,
involving global miners with both the skills and financial ability
to assist with these projects will be instrumental if the West is
going to be successful."
About 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 ("Feasibility Study to Produce 3Mtpy of High Purity
Apatite Concentrate at the Lac a Paul Project, Québec, Canada" released on November 13, 2013). The Company has 202,890,210
shares outstanding.
Qualified Person
Raphael Gaudreault, eng., Qualified Person by NI
43-101, has approved the technical disclosure in this release. Mr.
Gaudreault is also the Company's Chief Operating Officer.
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
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities in the United States. The security and the
securities into which they are convertible have not been and will
not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold within the United States or to U.S. Persons absent
registration under, or an applicable exemption from the
registration requirements of, the U.S. Securities Act and
applicable state securities laws.
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, information relating
to the advancement and potential of the proposed downstream
phosphoric acid project, including the construction, operation and
production of the PPA plant, the acceleration of the discussions
with other parties in connection with the project, and the
anticipated results of the investment by the Strategic Investor for
Arianne, its stakeholders, investors and the Saguenay region.
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 labor 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 approval, 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.