DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 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 and six-month period ended June 30, 2018. All amounts are in
Canadian dollars unless noted.
“We continue to move our project towards development,” said Brian Ostroff, CEO of Arianne Phosphate. “Since the beginning of the year, the industry has rebounded from a five-year slump with phosphate prices now up about 25% year to date. This change in macro coupled with Arianne’s own advancements, has been very helpful in our negotiations with offtakers, financiers and partners and, we continue to see very tangible interest and support for our Lac à Paul project.”
Q2 2018 Financial and Operational Highlights
- 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.
Highlights Subsequent to Quarter-End
- In August 2018, the company announced that it has partnered with the Province of New Brunswick to further its review of constructing a phosphoric acid plant in Belledune, New Brunswick. As part of this agreement, the Government, through Opportunities New Brunswick (“ONB”), will provide a financial contribution toward the cost of a prefeasibility study, the next step in Arianne’s assessment of its downstream opportunity.
- In August 2018, the company announced hat it entered into a Memorandum of Understanding (“MoU”) for the supply of sulphuric acid. Aside from phosphate rock, a phosphoric acid plant would also require a supply of sulphuric acid that could be consistently delivered in timely fashion. It is on this basis, that Arianne has entered into an MoU with a large marketer of sulphuric acid.
- In July 2018, the company announced that Arianne shareholders have reelected Messrs. Dominique Bouchard, Brian Ostroff, James Cowley, David DeBiasio, Marco Gagnon, Siva Pillay and Steven Pinney as directors of the Company during the Annual General Meeting of Shareholders of the Company held on July 10, 2018 in Montreal.
- On July 12, 2018, the Company extended the term of 2,815,500 common share purchase warrants issued as part of a private placement closed on July 31, 2014 for a gross proceed of$5,631,000. Each warrant, as part of the issued units, entitles its holder to purchase one common share of the Company at an exercise price of $1.25 per common share until July 31, 2018. The Company has elected to extend the expiry date of the warrants to July 31, 2019. No other term will be amended.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q2 2018. In the second quarter ended June 30, 2018, the Company incurred net losses of$0.2 for the three-month period and $0.9M for the six-month period. This compares to a net loss of$0.8M for the three-months and $1.6M for the six-months period in the comparable periods of 2017.
At June 30, 2018, the Company had $1.59M 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 month period ended June 30, 2018 are available on the Company’s website and on SEDAR at www.sedar.com.
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.