-Contemplated deal directly ties participation
to financing; supports parallel discussions on offtake
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, June 4, 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 is pleased to announce that it has entered into a
non-binding Memorandum of Understanding ("MoU") with SINOCONST, a
large Chinese state owned enterprise ("SOE"). Under the terms
of the MoU, Arianne and SINOCONST have agreed to work towards a
final binding agreement relating to the development of Arianne's
Lac à Paul project which, would include full project
financing. On a parallel track, efforts to secure offtake are
expected to be undertaken by SINOCONST in support of the financing
package discussed under the MoU. Participation in the
development of Lac à Paul on the part of SINOCONST is tied to
finalized project financing commitments.
"This is a very exciting development for Arianne and the
advancement of its Lac à Paul project," said Brian Ostroff, CEO of Arianne Phosphate.
"Where China used to be self-sufficient in phosphate, many industry
analysts now see the country heading for a deficit in phosphate
rock concentrate, joining the likes of India, another country of over 1 billion
people. Arianne believes that concluding definitive financing
agreements would be mutually beneficial; it would allow Arianne the
financing necessary to develop its mine and allow China, through SINOCONST, an opportunity to
access high-quality phosphate concentrate. The intent is now
for both parties to reach a fully binding agreement and, as per the
MoU, would directly tie SINOCONST's participation in the project's
development to their ability to provide necessary project financing
which, we believe, will be supported by offtake discussions; a
structure often seen in Chinese involvement in large mining
projects. For Arianne, this is a welcomed addition to
discussions we have ongoing with other potential suppliers,
offtakers and financial partners and our feeling is that this
should accelerate all discussions."
Although no assurances can be made as to a final agreement being
reached, conversations surrounding the MoU have been ongoing for
some time and both sides have indicated a strong willingness to
progress to a final binding agreement in as quick a timeframe as
possible.
China Machinery Industry Construction Group Inc. (SINOCONST) was
founded in 1953 and, is one of the earliest large state-owned
enterprises in China. SINOCONST has 15 wholly owned
subsidiaries and employs over 10,000 people. During the past
60 years since its establishment, SINOCONST has been involved in
hundreds of projects in 40 separate countries in different sectors
including both mining and agriculture. Aside from its
involvement in many global development projects, SINOCONST has
established in-depth strategic cooperation relationships with many
large financial institutions that can assist in the financing of
these large developments. As well, given its industrial,
geographic and financial advantages, SINOCONST and its subsidiary
China Machinery Industry Hainan Co. Ltd., are striving to expand
their import and export trading businesses that currently cover
machinery, agricultural and food products and minerals.
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.