DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, May 29, 2019 /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, 2019. All amounts are
in Canadian dollars unless noted.
"First, I want to thank our shareholders and stakeholders
for their support as we continue to advance our Lac à Paul project
towards production," said Brian
Ostroff, CEO of Arianne Phosphate. "During the first
quarter, we were able to continue to add quality personnel to our
Board and Management, enter into an agency agreement with a
prominent Indian fertilizer trader and receive the continued
support of the Government of Quebec by way of a further investment in
Arianne. These events continue to support our activities as
we pursue our discussions with offtakers, financiers and potential
partners, and thus, move our project towards development and
unlocking the considerable value that comes with it."
Q1 2019 Financial and Operational Highlights
- In March 2019, the Company
announced that it has entered into an agency agreement with
Compagnie Indo Française de Commerce ("CIFC") to market and sell
Arianne's high-purity, low-contaminant phosphate concentrate into
the Indian market. Based in New Delhi,
India, Compagnie Indo Francaise de Commerce Pvt. Ltd. is a
private company founded in 1967. CIFC's business includes the
trading, sale, marketing and supply of critical raw materials to
India, including fertilizers,
agricultural chemicals and animal feeds.
- In February 2019, the Company
announced the appointment of Mr. Jean
Fontaine to the Company's Board of Directors. Mr. Fontaine
is the Founder and President of JEFO Nutrition Inc., a global
leader in high-performance non-medicated nutritional solutions for
animals. Founded in 1982, JEFO has successfully grown its business
and its products are now marketed in 80 countries.
- In January 2019, the Company
announced the appointment of Andrew
Malashewsky as its new Chief Financial Officer ("CFO"). Mr.
Malashewsky is replacing Mr. James
Cowley, who has been serving as Arianne's interim CFO. Mr.
Malashewsky is a Chartered Professional Accountant and began his
career with Grant Thornton LLP before joining JDS Energy &
Mining.
Highlights Subsequent to Quarter-End
- In May 2019, the Company had
closed a $1.5 million investment from
the Government of Quebec by way of
private placement into the common shares of Arianne. Under the
terms of the offering, the Government of Quebec is subscribing for 3,671,970 common
shares of the Company at a price of $0.4085 per share. The securities issued in
connection with the financing are subject to a regulatory hold
period of four (4) months and one (1) day expiring on September 6, 2019.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q1 2019. In the first quarter ended March 31, 2019, the Company incurred net losses
of $0.6 for the three-month period.
This compares to a net loss of $0.7M
for the three-month period of 2018.
Liquidity
At March 31,
2019, the Company had $0.8M
cash on hand. These funds will be allocated towards general working
capital and advancing development of Lac à Paul in 2019. Based on
current spending estimates for future project development, Arianne
will need additional in the next 12 months.
Outlook
Through the rest of 2019, Arianne will be
focused on the ongoing advancement and development of its Lac à
Paul project. Expected milestones include:
- Complete partnership and financing arrangements;
- Continue to enhance the value of the project through project
optimization;
- Continue our ongoing dialogue with Stakeholders.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three‑month
period ended March 31, 2019 are
available on the Company's website and on SEDAR at
www.sedar.com.
Arianne is pleased to announce that the company shareholders
have reelected Messrs. Dominique
Bouchard, Brian Ostroff,
James Cowley, David DeBiasio, Marco
Gagnon, Siva Pillay, Steven
Pinney, Claude Lafleur and
Jean Fontaine as directors of the
Company during the Annual General Meeting of Shareholders of the
Company held on May 29, 2019 in
Montreal.
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 109,475,913
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.