Arianne enters Memorandum of Understanding with China Machinery Industry Construction Group (SINOCONST) -Contemplated deal directly ties participation to financing; supports parallel discussions on offtake DAN: TSX-V (Canada)
Arianne enters Memorandum of
Understanding with China Machinery
Industry Construction Group
(SINOCONST)
-Contemplated deal directly ties participation to financing; supports
parallel discussions on offtake
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, June 4, 2019 /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 is pleased to announce that it has entered into
a non-binding Memorandum of Understanding ("MoU") with
SINOCONST, a large Chinese state owned enterprise
("SOE"). Under the terms of the MoU, Arianne and SINOCONST
have agreed to work towards a final binding agreement relating to the
development of Arianne's Lac à Paul project which, would include full
project financing. On a parallel track, efforts to secure offtake are
expected to be undertaken by SINOCONST in support of the financing
package discussed under the MoU. Participation in the development
of Lac à Paul on the part of SINOCONST is tied to finalized project
financing commitments.
"This is a very exciting development for Arianne and the advancement
of its Lac à Paul project," said Brian Ostroff, CEO of Arianne
Phosphate. "Where China used to be self-sufficient in phosphate,
many industry analysts now see the country heading for a deficit in
phosphate rock concentrate, joining the likes of India, another country
of over 1 billion people. Arianne believes that concluding definitive
financing agreements would be mutually beneficial; it would allow
Arianne the financing necessary to develop its mine and allow China,
through SINOCONST, an opportunity to access high-quality
phosphate concentrate. The intent is now for both parties to reach a
fully binding agreement and, as per the MoU, would directly tie
SINOCONST's participation in the project's development to their ability
to provide necessary project financing which, we believe, will be
supported by offtake discussions; a structure often seen in Chinese
involvement in large mining projects. For Arianne, this is a welcomed
addition to discussions we have ongoing with other potential suppliers,
offtakers and financial partners and our feeling is that this should
accelerate all discussions."
Although no assurances can be made as to a final agreement being
reached, conversations surrounding the MoU have been ongoing for
some time and both sides have indicated a strong willingness to
progress to a final binding agreement in as quick a timeframe as
possible.
China Machinery Industry Construction Group Inc. (SINOCONST) was
founded in 1953 and, is one of the earliest large state-owned
enterprises in China. SINOCONST has 15 wholly owned subsidiaries
and employs over 10,000 people. During the past 60 years since its
establishment, SINOCONST has been involved in hundreds of
projects in 40 separate countries in different sectors including both
mining and agriculture. Aside from its involvement in many global
development projects, SINOCONST has established in-depth strategic
cooperation relationships with many large financial institutions that can
assist in the financing of these large developments. As well, given its
industrial, geographic and financial advantages, SINOCONST and its
subsidiary China Machinery Industry Hainan Co. Ltd., are striving to
expand their import and export trading businesses that currently cover
machinery, agricultural and food products and minerals.
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.") (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 (Feasibility Study released in 2013). The Company has
109,475,913 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.
Follow Arianne on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing
News: http://resourceinvestingnews.com/?s=Arianne
Cautionary Statements Regarding Forward Looking 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"). Forward-looking
information includes, but is not limited to, anticipated quality and
production of the apatite concentrate at the Lac à Paul project.
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. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: volatile
stock price; risks related to changes in commodity prices;
sources and cost of power facilities; the estimation of initial and
sustaining capital requirements; the estimation of labour and
operating costs; the general global markets and economic
conditions; the risk associated with exploration, development
and operations of mineral deposits; the estimation of mineral
reserves and resources; the risks associated with uninsurable
risks arising during the course of exploration, development and
production; risks associated with currency fluctuations;
environmental risks; competition faced in securing experienced
personnel; access to adequate infrastructure to support mining,
processing, development and exploration activities; the risks
associated with changes in the mining regulatory regime
governing the Company; completion of the environmental
assessment process; risks related to regulatory and permitting
delays; risks related to potential conflicts of interest; the reliance
on key personnel; financing, capitalization and liquidity risks
including the risk that the financing necessary to fund continued
exploration and development activities at Lac à Paul project may
not be available on satisfactory terms, or at all; the risk of
potential dilution through the issue of common shares; the risk
of litigation. Forward-looking information is based on
assumptions management believes to be reasonable at the time
such statements are made, including but not limited to,
continued exploration activities, no material adverse change in
commodity prices, exploration and development plans
proceeding in accordance with plans and such plans achieving
their stated expected outcomes, receipt of required regulatory
approvals, and such other assumptions and factors as set out
herein. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in the forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no
assurance that such forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such forward-looking
information. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking
information is made as of the date of this press release, and the
Company does not undertake to update such forward-looking
information except in accordance with applicable securities laws.
SOURCE Arianne Phosphate Inc.
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%SEDAR: 00003556E
For further information: Source, Jean-Sébastien David, C.O.O., Tel.
: 418-549-7316, [email protected]; Info, Brian Ostroff,
C.E.O., Tel. : 514-908-4202, [email protected]
CO: Arianne Phosphate Inc.
CNW 07:30e 04-JUN-19