Arianne Phosphate Reports Corporate and Financial Results for First Quarter 2018

DAN: TSX-V (Canada)
JE9N: FSE (Germany)

SAGUENAY, QC, May 23, 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 project in Quebec’s Saguenay-Lac-Saint-Jean region, reported its financial results for the three-month period ended March 31, 2018. All amounts are in Canadian dollars unless noted.

“The first quarter of the year has been a very busy one for our Company,” said Brian Ostroff, CEO of Arianne Phosphate. “Year to date, Arianne has made steady progress working with potential funders and partners for our project. As well, we are also seeing the recovery in phosphate prices from multi-year lows driving interest from potential offtakers. Ultimately, we believe that with so few new projects coming on-stream, our strong economics and our safe geopolitical jurisdiction will all be very supportive in our mission to get the Lac à Paul project developed and, unlock tremendous value for our investors and stakeholders.”

Q1 2018 Financial and Operational Highlights

  • In March 2018, the Company announced that it has received an investment from the Government of Quebec by way of private placement of $1,407,000 into the common shares of Arianne. Under the terms of the offering, the Company issued 2,333,333 units at a price of $0.63 per unit. Each unit was comprised of one common share and one half of one common share purchase warrant. Each warrant entitles its holder to purchase one common share at a price of $0.85 per share until March 14, 2021.
  • In March 2018, the Company announced, the start of research and development work to integrate aluminum in the design of the trailer that will transport the phosphate concentrate from the Lac à Paul mine to the deep water port that will be located in Sainte-Rose-du-Nord. The work will be done by the National Research Council of Canada (NRC) and Alcoa Innovation. In order to carry out this major work, Arianne will be able to rely on confirmed financial support from the Centre québécois de recherche et de développement de l’aluminium (CQRDA) and the Société de la vallée de l’aluminium (SVA).
  • In January 2018, the Company announced, the extension on the term of 1,217,500 common share purchase warrants (“Warrants”) issued as part of a private placement which closed on July 29, 2013 for gross proceeds of $2,678,500. Each of the Warrants, which were part of the units being issued, entitles its holder to purchase one common share of Arianne (a “Common Share”) at an exercise price of $1.45 per Common Share until January 27, 2018. Arianne has elected to extend the expiry date of the Warrants to July 27, 2018. No other Warrant terms were amended.

Highlights Subsequent to Quarter-End

In April 2018, the Company announced that it 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 program to produce additional high-purity phosphate concentrate to fulfil demand from potential customers and, to conduct further pilot-scale tests. 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.

Financial Summary

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q1 2018. In the first quarter ended March 31, 2018, the Company incurred net losses of $0.7M for the three-month period. This compares to a net loss of $0.8M for the three-month period of 2017.


At March 31, 2018, the Company had $1.17M cash on hand. These funds will be allocated towards general working capital and advancing development of Lac à Paul in 2018. Based on current spending estimates for future project development, Arianne will need additional financing in 2018.


Through the rest of 2018, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project. Expected milestones include:

  • Secure financing for construction and development of the Lac à Paul project;
  • Continue optimization of the Lac à Paul project including reducing cash operating production costs and capital expenses; Sign an “Impact and Benefit Agreement (IBA)” with the First Nations; and
  • Assist the Port of Saguenay in securing their environmental permitting from CEEA.

Arianne’s Management Discussion and Analysis and condensed consolidated interim financial statements for the three 31, 2018 are available on the Company’s website and on SEDAR at

Qualified Person

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.”) ( 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 100,530,580 million 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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