DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 25, 2016 /CNW
Telbec/ - Arianne Phosphate (the "Company" or
"Arianne") (TSX VENTURE: 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 six-month periods ended June
30, 2016. All amounts are in Canadian dollars unless
noted.
"The first six months of 2016 have proven to be a very
productive period for the Company," said Brian Ostroff, CEO of Arianne
Phosphate. "New appointments to the board and management, the
engagement of advisors and a continued dialogue with potential
partners and stakeholders, have all contributed to the advancement
of Arianne as we progress towards the development of our Lac a Paul
Project."
Q2 2016 Financial and Operational Highlights
- The Company announced that they have engaged Endeavour
Financial to act as their project finance advisor. Endeavour's role is to work with management in
reviewing various financing strategies and assist in discussions
with potential lenders and partners.
- The Company announced that Arianne shareholders reelected
Messrs. Jean Lamarre, Dominique Bouchard, Brian Ostroff, James
Cowley, David DeBiasio,
Marco Gagnon, Siva Pillay and
Steven Pinney as directors of the
Company during the Annual General and Special Meeting of
Shareholders of the Company held on June
28 in Montreal.
Highlights Subsequent to Quarter-End
- Renewal for listing in Mergent TM Manual and News
Reports. The listing provides the Company with Blue Sky exemption
in 39 U.S. states for the purposes of market activities.
- The Company extended the term of 2,815,500 common share
purchase warrants ("Warrants") issued as part of a private
placement which was closed on July 31,
2014. Each of the Warrants, which were part of the units
being issued, entitles its holder to purchase one common share of
the Company at an exercise price of $1.25 per common share until July 31, 2016. The Company has elected to extend
the expiry date of the Warrants to July 31,
2017. No other Warrant terms were amended.
Financial Summary
Arianne is a development-stage company and, as such, did not
generate revenue or positive cash flow in Q2 2016. In the second
quarter ended June 30, 2016, the
Company incurred respective net losses of $1.6M. This compares favourably to a net loss of
$2.0M in the comparable period of
2015. The year-over-year decline in net loss was due to reduced
expenses as the Company transitioned from more capital intensive
activities such as exploration and engineering studies, to a focus
primarily on permitting activities and financing alternatives,
which require less working capital.
Liquidity
At June 30, 2016, the Company had
$0.2M cash on hand and $0.8 million remaining undrawn on its credit
facility. These funds will be allocated towards general working
capital and advancing development of Lac à Paul in 2016. Based on
current spending estimates for future project development, Arianne
will need additional financing before the end of 2016.
Outlook
In 2016, Arianne will be focused on the ongoing advancement and
development of its Lac à Paul project. Expected milestones in 2016
include:
- Reduce cash operating production costs and capital
expenses;
- Continue our ongoing effort to communicate with our
stakeholders and the community;
- Assist the Port of Saguenay in securing environmental
permitting from the Canadian Environmental Assessment Agency;
and
- Secure financing for construction and development of the Lac à
Paul project.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three- and
six-month periods ended June 30, 2016
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 97,648,080 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