Proceeds will be used to advance strategic initiatives underway
SAGUENAY, QUEBEC – (August 22, 2017) – 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 announced today that it has closed on a $2,306,000 financing. Under the terms of the financing, Arianne has issued 2,882,500 units at a price of $0.80 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 $1.25 until August 22, 2020. If at any time after four (4) months and one (1) day following the closing date, the trading price of the Company’s common shares on the TSX Venture Exchange (the “Exchange”) is equal to or exceeds $1.60 for a period of ten (10) consecutive trading days, as evidenced by the price at the close of market, the Company shall be entitled to notify each warrant holder of its intention to force the exercise of the warrants. Upon receipt of such notice, the warrant holders shall have 30 days to exercise the warrants, failing which they will automatically expire.
“Although the fertilizer sector has been very challenging for a considerable period of time, the last year has seen a considerable pick up in transactions and interest in the space,” said Brian Ostroff, CEO of Arianne Phosphate. “These transactions coupled with recent supply disruptions out of Western Sahara and environmental concerns in Europe have increased the awareness of, and interest in, Arianne’s Lac à Paul project. Our belief is that the improving macro conditions coupled with Arianne’s significant progress will help bring the project to fruition and unlock the significant value associated with it. Over the last few months we have announced several agreements and initiatives and, these funds will allow us to accelerate our activities in this regard.”
In conjunction with this financing, Arianne has paid finder fees of $184,480 and issued 230,600 non-transferable warrants exercisable at a price of $0.80 per share until August 22, 2020. 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 December 23, 2017. The financing remains subject to the final approval of the Exchange.
