Arianne Phosphate closes private placement Secures $1.9 million; large participation from curr ent shareholders and insiders DAN: TSX-V (Canada) JE9N: FSE (Germany) DRRSF: OTC (USA)
Arianne Phosphate closes private placement
Secures $1.9 million; large participation from curr ent shareholders and insiders
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Jan. 2, 2018 /CNW Telbec/ - Arianne Phosphate (the "Company" or "Arianne")
(TSX VENTURE: DAN; OTC: DRRSF; FRANKFURT: JE9N) , a development-stage phosphate mining
company, advancing the Lac à Paul phosphate rock pr oject in Quebec's Saguenay-Lac-Saint-Jean
region, is pleased to announce that it has closed on a private placement financing for gross proceeds of
$1,915,219 (the "Offering"). The majority of the financing was subscribed for by current shareholders of
Arianne and, included the participation of all of the Company's Board of Directors and several members of
the management team.
"I believe that the involvement of some of our largest shareholders in this financing, including that of the
Company's Board of Directors and its management, sh ows a strong understanding of what Arianne has
accomplished over the past year and illustrates the growing optimism surrounding the Company's future,"
said Brian Ostroff, CEO of Arianne Phosphate. "Thro ugh 2017, we have been able to advance our project
towards development. Our ongoing project finance d iscussions involving both financial and strategic
parties, as well as offtakers, have been proceeding well and the feedback has been very positive. It is
these efforts that will ultimately allow us to unlock the inherent value in our Company and allow inve stors
and stakeholders to be rewarded for their ongoing s upport of the project."
Under the terms of the Offering, the Company issued 3,040,030 units (the "Units") at a price of $0.63 per
Unit. Each Unit is comprised of one common share ( a "Common Share") and one half of one common
share purchase warrant (each whole warrant being a "Warrant"). Each Warrant entitles its holder to
purchase one common share at a price of $0.85 per share until December 29, 2020 (being 36 months
following the closing date). If, however, at any time after four (4) months and one (1) day following the
closing date, the trading price of the Common Shares on the TSX Venture Exchange (the "Exchange") is
equal to or exceeds $1.25 for a period of ten (10) consecutive trading days, as evidenced by the price at
the close of market, the Company shall be entitled to notify the holders of Warrants of its intention to force
the exercise of the Warrants. Upon receipt of such notice, the holders of the Warrants shall have 30 d ays
to exercise the Warrants, failing which the Warrants will automatically expire.
In conjunction with this financing, Arianne has paid finder fees to several agents in the amount of $43,029
and issued 66,800 non-transferable warrants entitling to acquire same number of Common Shares at a
price of $0.63 per share until December 29, 2020. The securities issued in connection with the financing
are subject to a regulatory hold period of four (4) months and one (1) day expiring on April 30, 2018. The
financing remains subject to the final approval of the Exchange.
Directors and officers of the Company participated in the Offering and subscribed for an aggregate of
345,530 Units representing an aggregate amount of $ 217,684. Participation of insiders of the Company in
the Offering constitutes a "related party transaction" as defined under Regulation 61-101 respecting
Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). The Offering is
exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101
as neither the fair market value of securities being issued to insiders nor the consideration being pa id by
insiders will exceed 25% of the Company's market ca pitalization. The Company did not file a material
change report 21 days prior to the closing of the Offering as the details of the participation of insiders of
the Company had not been confirmed at that time.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") ( www.arianne-inc.com ) is developing the Lac à Paul
phosphate deposits located approximately 200 km nor th of the Saguenay/Lac St. Jean area of Quebec,
Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P 2O5 with
little or no contaminants. The Company has 103,570, 880 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Ser vices 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 Inf ormation
This news release contains "forward-looking stateme nts" and "forward-looking information"
within the meaning of applicable securities regulat ions in Canada and the United States
(collectively, "forward-looking information"). Forward-looking information includes, but is not
limited to, anticipated quality and production of t he 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", "schedu led", "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 inform ation 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 differ ent 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 po wer 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 associate d with exploration, development and
operations of mineral deposits; the estimation of m ineral reserves and resources; the risks
associated with uninsurable risks arising during th e course of exploration, development and
production; risks associated with currency fluctuat ions; 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; com pletion 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 h erein. Although the Company has attempted
to identify important factors that could cause actu al 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 re sults and future events could differ materially
from those anticipated in such forward-looking info rmation. 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 doe s 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, brian.ostroff@arianne-
inc.com
CO: Arianne Phosphate Inc.
CNW 08:46e 02-JAN-18