DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTCQX (USA)
SAGUENAY, QC, Nov. 8, 2024
/CNW/ - Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a
development-stage phosphate mining company, advancing the Lac à
Paul project in Quebec's
Saguenay-Lac-Saint-Jean region, issued a press release on
June 27, 2024 ("Press
Release"), announcing positive results from its purified
phosphoric acid prefeasibility study (the "PFS") relating to
the construction of a purified phosphoric acid ("PPA") plant in the
Saguenay region of Quebec (the
"PPA complex") to transform igneous-based phosphate
concentrate into a battery-grade phosphoric acid for use in the
lithium-iron-phosphate battery. Arianne would like to clarify
certain information disclosed in the Press Release regarding the
study.
As the study relates to a processing facility, readers are
cautioned that the term "prefeasibility study" used by the Company
in the Press Release to refer to this study is not the same as that
associated with mineral projects as defined under Regulation
43-101 respecting Standards of Disclosure for Mineral Projects
("Regulation 43-101"), and this study should therefore not be
viewed as equating to a "prefeasibility study" as defined under
Regulation 43-101 because the project is not a mineral project but
rather an industrial project, and therefore is not governed by
Regulation 43-101.
Commensurate with a prefeasibility study, a number of general
and untailored assumptions were used to assess the economic
potential of a PPA complex.
The PFS is based on a maximum yearly production capacity of
350,000 tonnes of PPA (100% P2O5) and 220,000
tonnes of a secondary phosphoric acid from 1.5 MT of phosphate rock
concentrate that can be purchased on the market on long term
contract basis and could eventually include concentrate from
Arianne's Lac à Paul project.
The Capex amount of US$1.65
billion and the Operating costs in the PFS were determined
using a class 5 estimate as defined per the American Association of
Cost Engineers (AACE) International Practice 18R-97 (Cost estimate
classification system – As applied in Engineering, Procurement, and
Construction in the Process industries). The estimate has an
accuracy of +/- 40% based on costs of Q2 2024. CAD values
were converted to USD at 1.35.
The annual and unit process operating costs in the PFS for the
PPA complex were determined for a maximum production of 350,000
tonnes annually of battery grade PPA and 220,000 tonnes of a
secondary phosphoric acid. The estimated operating costs for
the PPA plant and the sulfuric acid plant include labour,
electricity cost, potable and industrial water costs, maintenance
material, mobile equipment costs, phosphate rock concentrate and
sulfur.
The Press Release contained information extracted from the PFS
prepared by independent engineering firms which included
future-oriented financial information ("FOFI") on the
construction of, and the production from a PPA complex located in
Saguenay for a period extending December
31, 2024. The FOFI was included to provide the reader
with elements of the financial information which the Company will
use to make a decision to move forward or not with the Project, and
to further progress on discussions with potential partners.
Under section 4A.2 of Regulation 51-102 respecting
Continuous Disclosure Obligations, the public disclosure of
FOFI should cover a period for which the information can be
reasonably estimated. In many cases, the period should not go
beyond the end of the reporting issuer's next fiscal year and, in
order to comply with this policy, the Company excludes from its
Press Release the following FOFI: the Net Present Value, Internal
Rate of Return and payback period of the PPA complex.
Investors should perform their own due diligence and not rely on
the FOFI made by the Company in its Press Release to guide them in
their investment decisions.
About 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 to Produce 3Mtpy of High Purity Apatite
Concentrate at the Lac à Paul Project, Québec, Canada" released on November 13, 2013). The Company has 202,890,210
shares outstanding.
Qualified Person
Raphael Gaudreault, eng.,
Qualified Person by NI 43-101, has approved the technical
disclosure in this release. Mr. Gaudreault is also the Company's
Chief Operating Officer.
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 statement concerning forward-looking
information
This news release contains "forward-looking information"
within the meaning of Canadian Securities legislation. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "scheduled", "anticipates",
"expects" or "does not expect", "is expected", "scheduled",
"targeted", or "believes", 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 contained herein include,
without limitation, statements regarding the Company's future plans
relating to a projected PPA complex; the anticipated production of
PPA and related costs; the anticipated timing of a final investment
decision; and the anticipated features of the future site of the
PPA complex and expected benefits thereof.
Forward-looking information is based on certain estimates,
expectations, analysis and opinions of the Company and in certain
cases, third party experts, that are believed by management of the
Company to be reasonable at the time they were made. This
forward-looking information was derived utilizing numerous
assumptions regarding, among other things, the supply and demand
for, deliveries of, and the level and volatility of prices of PPA
for use in the lithium-iron-phosphate battery, expected growth,
performance and business operations, future commodity prices and
exchange rates, prospects and opportunities, general business and
economic conditions, and the Company's ability to procure supplies
and other equipment necessary for its business. The foregoing list
is not exhaustive of all assumptions which may have been used in
developing the forward-looking information. While the Company
considers these assumptions to be reasonable based on information
currently available, they may prove to be incorrect.
Forward-looking information should not be read as a guarantee of
future performance or results.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. Factors that may cause actual results to differ
materially from expected results described in forward-looking
information include, but are not limited to: the Company's ability
to access funding required to invest in available opportunities and
projects (including the proposed PPA complex) and on satisfactory
terms, the risk that the Company will not be able to meet its
financial obligations as they fall due, changes in commodity and
other prices, the Company's ability to retain and attract skilled
staff and to secure feedstock from third party suppliers,
unanticipated events and other difficulties related to
construction, development and operation of the PPA complex, the
cost of compliance with current and future environmental and other
laws and regulations, title defects, competition from existing and
new competitors, changes in currency exchange rates, market
prices of the Company's securities, as well as those risk factors
set out in the Company's Management Discussion and Analysis for its
most recent quarter ended June 30,
2024 and other disclosure documents available under the
Company's SEDAR+ profile at www.sedarplus.ca. Forward-looking
information contained herein is made as of the date of this news
release and the Company disclaims any obligation to update any
forward-looking information, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
SOURCE Arianne Phosphate Inc.