DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Nov. 22, 2017 /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- and nine-month periods ended September 30, 2017. All amounts are in
Canadian dollars unless noted.
"To date, 2017 has been a very productive year for us," said
Brian Ostroff, CEO of Arianne
Phosphate. "One of our most recent announcement regarding the
completion of our Information Memorandum for interested financing
parties follows on to what has been a rapid progression of positive
news that has materialized throughout the year. Discussions
continue to progress with potential partners, both strategic and
financial, as we look to conclude the agreements that will make Lac
à Paul a reality."
Q3 2017 Financial and Operational Highlights
- In August 2017, the Company
announced that it has closed on a $2,306,000 financing. Under the terms of the
financing, Arianne has issued 2,882,500 units at a price of
$0.80 per unit. Each unit is
comprised of one common share and a half warrant. Each full warrant
entitles the holder to purchase one common share at a price of
$1.25 until August 22, 2020. If at any time after four (4)
months and one (1) day following the closing date, the trading
price of the Company's common shares on the TSX Venture Exchange
(the "Exchange") is equal to or exceeds $1.60 for a period of ten (10) consecutive
trading days, as evidenced by the price at the close of market, the
Company shall be entitled to notify each warrant holder of its
intention to force the exercise of the warrants. Upon receipt of
such notice, the warrant holders shall have 30 days to exercise the
warrants, failing which they will automatically expire.
- In July 2017, the Company
announced, subject to regulatory approval, the extension on the
term of 2,815,500 common share purchase warrants issued as part of
a private placement which closed on July 31,
2014 for gross proceeds of $5,631,000. Each of the Warrants, which were part
of the units being issued, entitles its holder to purchase one
common share of Arianne at an exercise price of $1.25 per Common Share until July 31, 2017. Arianne has elected to extend the
expiry date of the Warrants to July 31,
2018.
Highligts Subsequent to Quarter-End
- In November 2017, the Company has
initiated the work required to produce additional phosphate
concentrate. Arianne has taken this step to meet the growing
interest it has been receiving from parties looking to secure
Arianne's high-purity concentrate for testing. The increased demand
in many cases has come from parties that had originally received
samples and are now looking to follow up with considerably larger
quantities. As well, the Company is seeing increased interest from
organizations in Europe that may
be affected by stricter environmental legislation and, are looking
to diversify their supply towards a "cleaner" high-purity
phosphate.
- In October 2017, the Company
completed a due diligence with independent parties that have come
in to evaluate and confirm the project from the lenders
perspective. The role of the independent parties was to subject the
Lac à Paul project to a full due diligence process. Every aspect of
the project from extraction, processing, infrastructure and
environmental were subject to review. From this, projected Capex
and Opex were built into a broad financial model that will allow
the respective finance partners to assess their interest in moving
forward and participating in the project finance. In conclusion,
the Company received a positive report from the independent
parties. Lastly, as part of the review process, an independent
analysis of the global phosphate market was undertaken. The report
supports the need for additional projects as added supply will be
required if we are to meet the persistent demand growth projected
over the next few years.
- In October 2017, the Company
announced that it has completed its Information Memorandum. This
document is being provided to financial institutions who've
expressed an interest in the project and want to assess the
possibility of being included in the project finance syndicate.
- In October 2017, the Company
announced the expanded roles of two directors.
Mr. Dominique Bouchard, already
director of Arianne, will become Executive Vice Chairman and work
closely with Arianne's COO and Chicoutimi based team, taking an active role
in many of the day to day activities and assisting with the
regional, provincial and national efforts underway. Mr. Siva Pillay
will also be taking a more active role, working closely with
Arianne's CEO, CFO and advisors in securing project
financing. Mr. Pillay is a board member and currently chairs
Arianne's audit/finance committee.
- In October 2017, the Company
announced, subject to regulatory approval, the extension on the
term of 1,184,500 common share purchase warrants issued as part of
a private placement which closed on October
16, 2014 for gross proceeds of $2,369,000. Each of the Warrants, which were part
of the units being issued, entitles its holder to purchase one
common share of Arianne at an exercise price of $1.25 per Common Share until October 15, 2017. Arianne has elected to extend
the expiry date of the Warrants to October
15, 2018.
Financial Summary
Arianne is a development-stage company and, as such, did not
generate revenue or positive cash flow in Q3 2017. In the third
quarter ended September 30, 2017, the
Company incurred net losses of $0.8M
for the three-month period and $2.4M
for the nine-month period. This compares to a net loss of
$0.8M for the three-months and
$2.4M for the nine-months period in
the comparable periods of 2016.
Liquidity
At September 30, 2017, the Company
had $1.47M cash on hand. These funds
will be allocated towards general working capital and advancing
development of Lac aPaul in 2017. Based on current spending
estimates for future project development, Arianne will need
additional financing in 2018.
Outlook
Through the rest of 2017 and into 2018, Arianne will be focused
on the ongoing advancement and development of its Lac a Paul
project. Expected milestones include:
- Secure financing for construction and development of the Lac a
Paul project.
- Reduce cash operating production costs and capital
expenses;
- Sign an "Impact and Benefit Agreement (IBA)" with the First
Nations;
- Assist the Port of Saguenay in securing their environmental
permitting from CEEA; and
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three- and
nine-month periods ended September 30,
2017 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 100,530,580 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.