DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Nov. 26, 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 and nine-month period ended September
30, 2019. All amounts are in Canadian dollars unless
noted.
"Despite a very challenging fertilizer macro, Arianne continues
to execute on the advancement of its Lac à Paul project," said
Brian Ostroff, CEO of Arianne
Phosphate. "Over the last quarter, we have advanced our
project on several fronts including, the improvement of
transportation logistics, the receipt of positive initial findings
surrounding a downstream phosacid plant and, the ability to attract
additional key personnel to the Arianne team. Discussions
with potential financiers and partners are also ongoing and, we
believe, the work the Company is doing now places it in a very good
position to take advantage of a turn in the fertilizer market."
Q3 2019 Financial and Operational Highlights
- In September 2019, the Company
has extended on a $4.1 Million loan
with various third-party lenders (the "Loan"). The extended loan
will have a maturity of September 28,
2021. The loan bears interest at 8%, paid semi-annually. As
part of the loan extension, the Company issued 7,453,800
non-transferable warrants with each warrant entitling the holder to
purchase one common share of the Company at a price of $0.55 per share for a term of 2 years expiring on
September 28, 2021.
- In August 2019, Arianne has
closed on a $691,050 financing. Under
the terms of the financing, Arianne has issued 1,256,455 units at a
price of $0.55 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
$0.75 until August 21, 2021.
- In July 2019, the Company
announced efforts surrounding transportation logistics have
significantly progressed. Arianne partnered with several parties to
look at greater integration of aluminum into the truck trailer
design. Through this initiative over the past year, Arianne and its
partners have advanced a design that will be able to reduce the
weight of the transport trucks and allow for a greater payload per
run. Once integrated, this will result in fewer trucks on the road,
increasing safety and reducing the overall environmental impact. As
well, this design will bring about greater economies of scale,
resulting in a reduction in the cost of transporting Arianne's
phosphate concentrate to port and thus, the overall operating cost
for its project.
- In July 2019, Arianne announced
the addition of Raphael Gaudreault
to its team. Raphael will be assuming the position of Director of
the mining sector and comes to Arianne after most recently serving
as Manager Planning and Mining Performance at Arcelor.
Highlights Subsequent to Quarter-End
- In October 2019, Arianne has
announced that it has received its initial findings back from a
study regarding a downstream phosphoric acid facility. The
Company's phosphate concentrate responded extremely well to the
beneficiation process and resulted in the production of up to a 60%
P2O5 Merchant Grade Acid ("MGA") compared to the market typical 52%
MGA grade. Furthermore, due to the high-quality nature of the
phosphate concentrate input, the gypsum by-product produced during
the process appears to have commercial value, whereas traditional
phosphate concentrates will produce contaminated waste.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q3 2019. In the third quarter ended September 30, 2019, the Company incurred net
losses of $0.4 million (M) for the three-month period
and $1.7 M for the nine-month
period. For the same period in 2018, the net loss incurred was
$0.5M for the three-months and
$1.4M for the nine-month period of
2018.
Liquidity
At September
30, 2019, the Company had $1.1M cash on hand. These funds will be allocated
towards general working capital and advancing development of Lac a
Paul in 2019.
Outlook
Through the rest of 2019 and into the new
year, Arianne will be focused on the ongoing advancement and
development of its Lac à Paul project, namely:
- 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 nine‑month period
ended September 30, 2019 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 111,458,250
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.