SAGUENAY, QUEBEC – (February 27, 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 northern Quebec, reported its corporate and financial results for the three- and twelve-month periods ended December 31, 2013.
“We remain focused on bringing our world-class Lac à Paul Phosphate Project into production,” said Brian Kenny, CEO of Arianne Phosphate. “The progress we made in 2013 paves the way for Lac à Paul’s continued development in 2014. This year we will concentrate on further improving the project’s potential through optimization studies and key de-risking activities, including securing regional stakeholder and government agreements and finalizing strategic and financial partnerships. We remain firmly committed to realizing the greatest value of the Lac à Paul asset for our shareholders.”
2013 Corporate & Financial Highlights
- Announced robust feasibility study results on its Lac à Paul Project. Study highlights included:
o Net Present Value (“NPV”) of US$1.9B at 8%;
o Internal Rate of Return (“IRR”) of 20.7% with a pre-tax capital payback period of 4.4 years;
o A 25.75 year mine life (excluding pre-production) with an average annual phosphate concentrate production of 3Mt with a grade of 38.6% P2O5 and with average mill recovery of 90.0%; and,
o M&I resources in the Paul Zone alone of 590Mt grading an average of 7.1% P2O5 at a 4.0% cut-off grade.
- Strengthened Arianne’s balance sheet by securing $15.5M in financing through a series of transactions, including a private placement, credit facility and exercised warrants, that demonstrated both the market’s and shareholder’s continued confidence in the Lac à Paul Project;
- Advanced Lac à Paul’s permitting process by submitting the Project’s Environmental Impact Assessment to the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks for review;
- Maintained strong local community relationships by expanding Arianne’s community development program and continuing public consultations in the region;
- Commissioned a study to determine the socio-economic benefits received by the communities in the Saguenay-Lac-Saint-Jean area and at all government tiers;
- Strengthened its leadership team through the appointment of Guthrie Stewart, as Interim Chairman, Pierre Fitzgibbon, Dominique Bouchard, Steven L. Pinney and Siva J. Pillay to the Board of Directors and Brian Kenny as Chief Executive Officer;
- Consistent with its focus of advancing the Lac à Paul Phosphate Project towards production, Arianne divested its non-core, non-phosphate assets; and,
- Renamed the Company to Arianne Phosphate, again consistent with this focus.
Highlights subsequent to Q4 2013
- Engaged National Bank Financial Inc. and Wells Fargo Securities Canada, Ltd. as exclusive financial and strategic advisors to undertake a formal review of alternatives for the Lac à Paul Project;
- Commenced a new drilling program and metallurgical test program aimed at increasing the mineral resources and finalizing the process flow sheet; and,
- Recognized as a 2014 TSX Venture 50, a ranking of the strongest performing companies on the TSX.V.
Through 2013, Arianne did not generate revenue or positive cash flows as the Company is still a development-stage entity. In the three- and twelve-months ended December 31, 2013, the Company incurred respective net losses of $1.1M and $6.4M, compared to $2.7M and $5.4M in the same periods in the previous fiscal year. The Company’s net loss and cash burn are consistent with other development-stage mining companies.
At year-end, the Company had $6.9M cash on hand which will be allocated towards general working capital and advancing development of Lac à Paul in 2014.
In addition, since January 1, 2014, the Company has received more than $1.8M through the exercise of options and warrants. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing before the end of 2014.
In 2014, Arianne will be focused on further advancing the Lac à Paul Project. Key 2014 milestones include:
- Pass public hearings and obtain the environmental permit for the project;
- Secure agreements with the First Nations communities impacted by Arianne’s operations and sign Impact Benefit Agreements;
- Secure project funding;
- Further define the resource base at Lac à Paul through the completion of a new drilling campaign; and,
- Conduct metallurgical optimization tests to freeze the process flow sheet and allow detail engineering to commence.
Arianne’s Management Discussion and Analysis and Financial Statements for the three- and twelve-month periods ended December 31, 2013 are available on the Company’s website and on SEDAR at www.sedar.com. Unless otherwise noted, all figures in this news release are reported in Canadian dollars.
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 85.2 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.
Source: Brian Kenny, CEO Tel: 514-699-7436 firstname.lastname@example.org
Info: Derek Lindsay, CFO Tel: 514-594-2372 email@example.com
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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.