DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Nov. 14 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 nine-month period ended September
30, 2018. All amounts are in Canadian dollars unless
noted.
"Arianne had a strong and productive quarter," said
Brian Ostroff, CEO of Arianne
Phosphate. "Over the most recent quarter, we have made progress on
several initiatives that we believe are key to getting our project
financed. The signing of our first commercial offtake, the
advancement of our exploratory work surrounding a potential
phosphoric acid plant and, most recently, the Port of Saguenay's
receipt of its permit to allow for a maritime facility on the north
shore have all signaled that things are moving in the right
direction for Arianne. In the coming months we hope to
continue to hit the milestones necessary to begin the development
of our Lac à Paul deposit and unlock its value for investors and
stakeholders."
Q3 2018 Financial and Operational Highlights
- In September 2018, the Company
announced the formal execution of its first offtake agreement.
Under the terms of the Agreement, the buyer has entered into a
long-term contract to purchase Arianne's high-purity phosphate
concentrate which, will be shipped to the buyer's processing plant
for further processing into downstream phosphate products. The
offtake agreement also has a mechanism whereby it can be extended
beyond the initial contract period and applies pricing that
accounts for the high quality of Arianne's concentrate.
- In August 2018, the Company
announced the appointment of Mr. Claude
Lafleur, agr, to the Company's Board of Directors. In
conjunction with Mr. Lafleur's appointment to the Board, he has
been granted 200,000 stock options.
- 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 it has 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. This agreement will allow the Company
to work with a strong industry player that can provide the venture
ongoing guidance on sulfuric acid pricing, logistics and industry
supply/demand trends; all necessary aspects in determining the
project's viability.
- 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.
Highlights Subsequent to Quarter-End
- In October 2018, the Company
announced that the Port of Saguenay received a favorable decision
with regards to the construction of a maritime terminal facility on
the north shore of the Saguenay River. Granted by the Minister for
the Environment and Climate Change, the Honorable Catherine
McKenna, this decision now paves the way forward for the
construction of a terminal that will allow for the shipping of
Arianne's phosphate concentrate to customers around the world.
- In October 2018, the Company
announced its association with the Saguenay Lac St-Jean Regional
Economic Benefits Maximization Committee (CMAX) (referring to 02
Economic Development (02 ED)). CMAX is a tool that was put in place
to maximize the benefits of large projects. Arianne will benefit
from the regional expertise of this group and have access to the
expertise of some 2000 Saguenay Lac St-Jean companies.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q3 2018. In the third quarter ended September 30, 2018, the Company incurred net
losses of $0.5 for the three-month
period and $1.4M for the nine-month
period. This compares to a net loss of $0.7M for the three-months and $2.2M for the nine-months period in the
comparable periods of 2017.
Liquidity
At September
30, 2018, the Company had $0.9M 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 in the next 12
months.
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.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three‑month
period ended September 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
(Feasibility Study released in 2013). 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.