Arianne Phosphate Closes on Oversubscribed $5,750,000 Financing
Arianne Phosphate Closes on Oversubscribed
$5,750,000 Financing
NOT FOR DISTRIBUTION TO
UNITED STATES
NEWS WIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
Includes exercise in full of Underwriters' option
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
SAGUENAY, QC,
June 4, 2021
/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,
has closed its previously announced bought deal private placement offering (the
"Offering"
) of
11,500,000 units of the Company (each, a "Unit") issued at
$0.50
per Unit (the
"Issue Price"
) for
gross proceeds of
$5,750,000
.
"Arianne's hard work over the last few years is starting to pay off and is not lost on our supporters,"
said
Brian Ostroff
, President of Arianne Phosphate. "The closing of this financing shows that
interest in our Company is growing and investors are looking to capitalize on the improving macro. It
is also an acknowledgement of Arianne's leading position in the phosphate area. With the Company
now in a very strong financial position, Arianne will accelerate its move towards development.
Further, with these additional resources, Arianne can continue to expand some of its work in other
potential markets for its high-purity phosphate concentrate."
Each Unit is comprised of one common share of the Company and one-half of one transferable
common share purchase warrant (each whole warrant, a
"Warrant"
). Each Warrant entitles the
holder thereof to acquire one additional common share of the Company (a
"Warrant Share"
) at an
exercise price of
$0.71
per Warrant Share for a period of 24 months following the closing of the
Offering.
PI Financial Corp. acted as lead underwriter (the
"Lead Underwriter"
) in connection with the
Offering with a syndicate including Red Cloud Securities Inc. (together with the Lead Underwriter,
the
"Underwriters"
).
As consideration for the services provided by the Underwriters in connection with the Offering, the
Underwriters received: (a) a cash commission equal to 6% of the gross proceeds of the Offering
(reduced to 1% for certain subscribers on the president's list (the
"President's List"
)); and (b) that
number of non-transferable compensation warrants (the
"Compensation Warrants"
) as is equal to
6% of the number of Units issued under the Offering (reduced to 1% with respect to certain
subscribers on the President's List). Each Compensation Warrant is exercisable to acquire one
common share of the Company at the Issue Price for a period of 24 months following the closing of
the Offering.
The net proceeds from the Offering will be primarily used to fund development expenses for the Lac
à Paul Project, and for general working capital purposes.
All securities issued in connection with the Offering are subject to a statutory hold period in
Canada
expiring four months and one day from the closing of the Offering. The Offering remains subject to
final acceptance of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any
securities in
the United States
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws, and may not be offered or sold within
the "United States
" or to "U.S. Persons" (as such terms
are defined in Regulation S under the U.S. Securities Act) unless registered under the U.S.
Securities Act and applicable state securities laws or unless an exemption from such registration is
available.
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
185,389,469 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 and the use of net proceeds from the Offering. 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:
http://www.newswire.ca/en/releases/archive/June2021/04/c2459.html
%SEDAR: 00003556E
For further information:
Contact Information: Source: Jean-Sébastien David, C.O.O. Tel. : 418-
549-7316 [email protected]; Info: Brian Ostroff, President Tel. : 514-908-4202
CO: Arianne Phosphate Inc.
CNW 10:10e 04-JUN-21