SAGUENAY, QUEBEC – (June 30, 2015) – Arianne Phosphate (the “Company” or “Arianne”), 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 its ongoing efforts to reduce the production cost of its high-purity phosphate concentrate have led to an additional $8 per tonne reduction in the Company’s operating expense.
According to the Company’s Feasibility Study (“FS”) filed in October 2013, Arianne initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate. Following the release of the Feasibility Study, the Company has launched numerous initiatives to improve the project economics with much of that effort targeted at reducing its operating costs. To date, the Company has announced an optimized mining plan to include additional resources it had proved up, as well as savings associated with a more streamlined metallurgical process. This subsequent reduction is a continuation of the Company’s efforts to move the Lac à Paul project even lower on the cost curve.
“Our latest success in reducing our anticipated production costs is very encouraging and, when looked at through its entire process, represents a considerable savings over the projected life of mine,” commented Jean-Sebastien David, Arianne’s COO. “From the day we released our Feasibility Study, we have set out to advance development of Lac à Paul. In less than two years, we have expanded our resource, simplified our process to make a high-purity phosphate concentrate, concluded a power deal with Hydro-Québec and received an investment from the Government of Quebec. Once the project proceeds to production, our most recent studies support a production cost of approximately $80 per tonne of concentrate.”
The Company recently signed a Cooperation Agreement with the First Nations and concluded its public hearings in order to receive final permitting for its Lac à Paul project. Going forward, Arianne will continue to explore other initiatives in order to optimize its project and further reduce its costs.
Changes in the management team
Dino Fuoco, Chief Financial Officer and Corporate Secretary, announced that he will be leaving the Company on July 3rd to return to private practice. The Board of Directors of Arianne wishes to thank Mr. Fuoco for his excellent contribution to the development of the Lac à Paul project and wishes him well.
In the interim, Mr. Fuoco’s role will be filled by James Cowley. Mr. Cowley, who currently sits on the Board of Arianne, is also a member of the audit committee. Mr. Cowley had previously served as President of Arianne from August of 2011 until August of 2014.
Grant of stock options
Arianne has granted 40,000 stock options to a member of the Board of Directors. Each Option entitles the holder to purchase one common share of the Company until June 29, 2025 at a price of $0.86 per share, this being the closing price of the Company’s shares on the trading day preceding the date of grant. The Options are subject to a three year vesting period under the Plan and the Policy, and are also subject to regulatory approval.
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 95,325,755 million shares outstanding.
(1) Cautionary Statements: Operating cost estimates have been developed by Arianne utilizing internal and skilled third party resources and are dependent on agreement with government and statutory authorities and vendors which have not all yet been completed. They are therefore not 43-101 compliant at this time.
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.
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Forward Looking Statements and 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”). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. 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. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.