DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, April 3, 2018 /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 phosphate rock project in Quebec’s Saguenay-Lac-Saint-Jean region, is pleased to announce that it has received a grant of $ 1.5 million from the Ministry of Energy and Natural Resources of Quebec. This funding has been provided as part of the Government’s plan to help advance the Quebec phosphate (apatite) sector. Arianne will be using this funding in support of its previously announced (see Press Release dated November 8, 2017) program to produce additional high-purity phosphate concentrate to fulfil demand from potential customers and, to conduct further pilot-scale tests.
“Demand continues to grow on the part of potential customers,” said Jean-Sébastien David, Chief Operating Officer of Arianne Phosphate. “Many of those interested have already received product samples and are now asking for even larger volumes to carry out large-scale tests in their own facilities. Further, legislative changes in Europe regarding cadmium content in phosphate entering the EU, and, supply disruptions out of certain phosphate-producing regions have continued to push new requests for Arianne’s concentrate.”
“We welcome the Government’s support,” added Brian Ostroff, Arianne’s CEO. “Seeing Quebec step up with very tangible assistance for the sector, I think, shows the potential for creating a major new industry for the Province and an effort to see our Lac a Paul project succeed. These funds will allow us to attract the customers we need to conclude on our project financing.”
This grant of $1.5 Million follows on an equity investment that was made by the Province last month (see Press Release dated March 15, 2018) for $1.4 Million and shows the growing support to see this important project become a reality. “The quality of the concentrate produced from the Arianne Phosphate deposit will demonstrate to the international market the interest of investing in the project and will encourage the signing of firm purchase agreements for the Company,” said Mr. Pierre Moreau, Quebec’s Minister of Energy and Natural Resources and, Minister in charge of the Plan Nord. Mr. Serge Simard, member of Quebec’s National Assembly for the riding of Dubuc added, “the [Arianne] project to develop this resource not only contributes to diversifying economic activity in the region, but is also consistent with regional priorities stemming from the Saguenay-Lac-Saint-Jean Economic Summit….”
The tests will be conducted at COREM (Research Consortium for the Treatment and Processing of Mineral Substances) in Quebec City, where the Company conducted its previous pilot-scale tests, and, materials will be sent to parties that have expressed a strong interest in pursuing some form of offtake and/or a strategic partnership with Arianne.