Arianne Furthers its Review of a Downstream Phosphoric Acid Facility Enters into a Memorandum of Understanding for the supply of sulphuric acid DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTC ( USA )
Arianne Furthers its Review of a Downstream
Phosphoric Acid Facility
Enters into a Memorandum of Understanding for the supply of sulphuric acid
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
Aug. 1, 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, is
continuing its initial in-house review regarding the construction of a downstream phosphoric acid
facility and, in conjunction with this review, the Company has entered into a Memorandum of
Understanding ("MoU") for the supply of sulphuric acid.
Since first announced (see Press Release dated
June 8, 2017
), Arianne and potential partners have
completed a preliminary look at the opportunity of constructing a phosphoric acid facility capable of
producing high-purity phosphoric acid for domestic and international markets. Several potential sites
have been reviewed and further work is currently being done to try and finalize on a potential location
before doing greater work around the opportunity, namely, getting a better understanding around the
logistics, economics and end-product specifics.
The decision on whether to move forward on this project comes down to several factors. Arianne
believes that the most important component for a successful venture would be having access to a
steady phosphate rock supply. With roughly 85% of all global downstream facilities vertically
integrated, the ability to source phosphate rock is key and, it is the biggest challenge to the
operations that do not have their own supply. An Arianne facility would be well positioned as it
would have access to its own rock supply and would derive the economic benefits of vertical
integration.
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. This agreement will allow the Company to work
with a strong industry player that can provide the venture ongoing guidance on pricing, logistics and
industry supply/demand trends; all necessary aspects in determining the project's viability.
Additionally, over the last year as Arianne has been studying the possibility of a downstream facility,
the phosphate industry has started to improve, with demand for both phosphate rock and its by-
products, such as acid, continuing to grow.
"The cure to a low commodity price is a low commodity price," said
Brian Ostroff
, CEO of Arianne
Phosphate. "Demand for phosphate grows every single year, yet consistently lower prices for
phosphate over the last five years affected supply growth with expansion plans curtailed and new
projects being shelved. After a prolonged period of time, a lot of what was believed to be excess
supply gets taken up and you go from excess supply to tightness and, the price correspondingly
starts to increase, sometimes quite dramatically. Since the beginning of the year, phosphate prices
are already up by 25% and most industry watchers believe there is more to come. Arianne, with its
world-class Lac à Paul project, should be in a position to take advantage of the industry revival."
Arianne over the next few months will continue to move forward its due diligence and discussions
with potential partners regarding the viability of constructing a phosphoric acid plant. With the overall
environment of the phosphoric acid industry improving, Arianne is increasing its pace of due diligence
and has an expanded list of potential partners. It will be from these results that the full extent of the
opportunity can be assessed.
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% P
2
O
5
with little or no contaminants (Feasibility Study released in 2013) . The Company has
103,570,610 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.
View original content with multimedia:
http://www.newswire.ca/en/releases/archive/July2018/31/c4482.html
%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, brian.ostroff@arianne-
inc.com
CO: Arianne Phosphate Inc.
CNW 07:30e 01-AUG-18