SAGUENAY, QC, Sept. 15, 2014 – Arianne Phosphate (the “Company” or “Arianne”) (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac à Paul Phosphate Project in Quebec’s Saguenay region is pleased to announce the Quebec Government investment of $2M in the project. This investment, to be made by Investissement Québec, is part of Arianne’s previously announced $8M financing (see our press release dated July 31, 2014) and will close in conjunction with the closing of the second tranche of the financing in the coming days.
“This is a world class project with enormous benefits to all involved,” said Pierre Fitzgibbon, Chairman of Arianne. “By making this investment, the Government of Quebec is helping to pave the way forward for this important project. This concrete show of support will allow the strengthening of the region’s economy, pioneer a new long-lasting industry for Quebec and, of course, provides the province the economic benefit of being a shareholder in this $1.9B [NPV] asset, as stated in its feasibility study from October 2013. The jobs and benefits to the community are that much closer.”
According to Raymond Chabot Grant Thornton’s analysis (refer to the press release dated February 25, 2014), Arianne’s Lac à Paul project is set to be the most significant development in the province. Already shown to be one of the largest greenfield phosphate project in the world, independent studies anticipate that Lac à Paul will provide over $12.5B in economic benefit to the region during the first 25 years of operation. The project will create over 2,200 jobs during the construction phase, 1,000 direct and indirect jobs during operation and provide $1B in employment income to the region over this period.
“We are very pleased that the government has chosen to support this project and believe that they will be an exceptional partner as we go forward through permitting and ultimately development,” commented Jean-Sebastien David, the Company’s COO. “Certainly, this is a big project and it will require the support of all those involved. By having the government there, I think it shows the commitment of the province to doing all they can do to help see Lac à Paul be developed. Their investment will enable our team to continue to focus their efforts and energy on the ultimate success of our project. This investment also adds to the string of recent favorable corporate events over the last few months: positive drill results, favorable cost reductions and strong management additions.”
Under the terms of the offering, Units of the Company (the “Units”) were offered at a price of $1.00 per Unit. Units of the Company consist of one common share (the “Common Share”) and one half common share purchase warrant (each whole warrant being a “Warrant”). Each full Warrant entitles its holder to purchase one common share at a price equal to $1.25 for a period of twenty-four (24) months following the closing date. If at any time after four (4) months and one (1) day following the closing date, the trading price of the Common Shares on the TSX Venture Exchange is equal to or exceeds $1.75 for twenty (20) consecutive trading days, as evidenced by the price at the close of market, the Company shall be entitled to notify the holders of Warrants of its intention to force the exercise of the Warrants. Upon receipt of such notice, the holders of the Warrants shall have 30 days to exercise the Warrants, failing which the Warrants will automatically expire.
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. The Company has 92,868,755 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.
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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. 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.