Arianne Phosphate Caps Royalty Buyback and Issues Shares as Interest Payment DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE CAPS ROYALTY
BUYBACK AND ISSUES SHARES AS
INTEREST PAYMENT
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
April 2, 2024
/CNW/ -
Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining
company, advancing the Lac à Paul project in
Quebec's
Saguenay-Lac-Saint-Jean region, today is
announcing that it will issue 6,080,939 common shares at a price of
$0.3229
per share, in lieu of
cash, as its annual interest payment to Mercury Financing Corp. ("Mercury") as at,
March 31
,
2024. As part of the agreement with Mercury, Arianne has at its sole option the ability to pay its
interest by way of cash or shares and, such cash amount would have been equal to
$1,963,535
. The
Company has elected to pay this amount in common shares with these securities issued being
subject to a hold period ending
August 1
, 2024.
As well, Arianne has been able to negotiate a cap in the amount it can pay in order to repurchase an
additional royalty that was put in place in
March 2021
when the Company extended its credit facility
with Mercury for five years and lowered the annual interest rate to 8% (see Press Release dated
March 18, 2021
). Under the terms of the extension, an additional royalty was put in place that would
escalate by
$0.25
/tonne annually while the credit facility was in place. This additional royalty could
be bought back for
$2.25 million
for every year the credit facility was in place, however, Arianne has
been able to cap the payment for the repurchase of this additional royalty to a maximum of
$6.75
million
.
Additionally, Arianne today is announcing that it has engaged Impaq Capital Inc. to provide investor
relation services to the Company. Under the terms of the Agreement, Arianne will pay
$5,000
/month
for a minimum period of 6 months and has issued 150,000 options that are good for a period of 2
years and exercisable at
$0.275
. These options are subject to a vesting period of 25% per quarter
over the first year.
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
196,809,271 shares outstanding.
Qualified
Person
Raphael Gaudreault
, eng., Qualified Person by NI 43-101, has approved this release. Mr.
Gaudreault is also the Company's Chief Operating Officer.
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 be 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 approval, 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:
http://www.newswire.ca/en/releases/archive/April2024/02/c8473.html
%SEDAR: 00003556E
For further information:
Source : Raphael Gaudreault, COO, Tel. : 418-590-1318,
[email protected]; Info: Brian Ostroff, President, Tel. : 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 19:16e 02-APR-24