Arianne Phosphate Provides 2024 Recap and Discusses Plans FOR 2025 DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE PROVIDES 2024
RECAP AND DISCUSSES PLANS FOR 2025
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
Jan. 8, 2025
/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 is pleased
to provide a review of 2024 and discusses its corporate priorities in 2025.
Phosphate Macro and the LFP
The phosphate macro for 2024 was strong as battery demand continued to grow rapidly in
combination with the traditional growth of fertilizer demand. This past year saw the lithium-iron-
phosphate ("LFP") battery begin to surpass the NMC battery in many markets as, aside from the
battery's dominance in the Chinese EV market, many Western automakers have now also started to
adopt the battery technology. Further, the rapid growth in Energy Storage Systems ("ESS") has
advanced well beyond original expectations and is adding significant demands on an already tightly
supplied phosphoric acid market. These events have come at a time when there is a growing
understanding in the West that there is a competitive disadvantage relative to
China
when it comes
to access to the necessary critical materials, production facilities and technological capability. This
has resulted in the procurement and production of these batteries becoming a national priority
among many Western countries.
The recognition of the growth and importance of the LFP coupled with the fact that today, well over
90% of all LFP batteries are produced in
China
, led both the Canadian and
Quebec
governments to
add phosphate to their respective critical mineral lists in 2024. This has been a very positive
development for Arianne as its
Quebec
based Lac à Paul project is globally understood to be the
preeminent phosphate development in the West. Phosphate's addition to the critical minerals lists
has added to the importance and awareness of the project and will allow access to various
government programs that provide funding for critical mineral projects.
Phosphoric Acid Facility
Given the growing importance of phosphate, including its use as a battery material, in 2024 Arianne
began its formal pursuit of the construction of an operation centered on the production of purified
phosphoric acid ("PPA"). To this end, the Company embarked on a prefeasibility study that was
completed in the second quarter of 2024 (see press releases dated
June 27, 2024
and
November 8, 2024
). The facility will take advantage of the igneous nature of phosphate in the region;
Lac à Paul having the largest known greenfield deposit. Using igneous-based phosphate will allow
for the easy conversion of concentrate to PPA at a preferred ratio relative to other operations that
use traditional sedimentary based phosphate.
The study affirmed the positive economics surrounding the construction of a PPA plant in the
Saguenay region of
Quebec
, with access to the output from Arianne's Lac à Paul deposit, as well as
other early-stage deposits, should they materialize. The facility would have a maximum production
capacity of 350,000 tonnes of battery/food grade PPA, as well as 220,000 tonnes of a second-
tiered acid used for animal feeds and specialty fertilizers. The facility would be the largest PPA
producer outside of
China
and have an extremely competitive cash-cost profile. As the West looks to
access critical materials outside of
China
, it is believed that this facility would tie into a more secure
supply chain.
Strategic Investment
The improving macro for phosphate along with Arianne's corporate achievements throughout the
year culminated in the Company receiving a strategic investment from a large, global mining
company (see Press Release dated
October 17, 2024
). This investment continues to recognize the
growing interest in phosphate by miners as well as those directly involved in the battery technology,
EV and fertilizer industries.
The Year Ahead
Going into 2025, Arianne is looking to build on its successes of 2024 and move its projects,
upstream and downstream, forward. As the Company believes that strong partners will be
necessary to develop the opportunities, Arianne will continue to work with its strategic investor as
well as the numerous other companies that have entered into Confidentiality Agreements and are
pursuing their due diligence. The Company is also continuing its dialogue with both the
Quebec
and
Canadian governments to unlock these opportunities that will allow for development. Arianne has
been able to leverage high-level introductions that have been made to 'would-be' participants in the
project.
Operationally, Arianne will be advancing its work on its proposed downstream facility. The Company
has commenced further studies to optimize the ratio of PPA to second-tiered acid. Already
recognized as an extremely high ratio (roughly 2:1), Arianne sees the possibility of squeezing
additional gains in its production of PPA using its high-quality phosphate concentrate. Any
incremental improvements would continue to enhance the profitability profile of the facility and
generate additional capacity for companies the require the material for their needs. The Company
also believes that there are additional enhancements that can result in lower costs and continues to
work with various groups on this.
Investor Awareness
Lastly, given the improvement in the global macro for phosphate and the Company's achievements
over the last year, Arianne will look to build a greater awareness of the Company within the
investment community and enhance its investor and public relations' programs. Arianne's Lac à Paul
deposit currently has the world's largest greenfield resource, has easy access to needed
infrastructure, enjoys strong social acceptability and is fully permitted. Additionally, the plan of
building a downstream operation has added to the attractiveness of the opportunity and its economic
profile. A greater awareness and understanding of the Company and, achieving the milestones set
forth, should help to close the significant gap that exists between market value and NPV.
Other Matters
In addition, Arianne today has announced the granting of 570,000 stock options to its senior
management and directors. The stock options entitle its holder to purchase one common share of
the Company until January 8, 2035 at a price of
$0.165
; this being the closing price of the
Company's shares on the trading day preceding the date of the grant. These options are all subject
to respective vesting periods and subject to regulatory approval.
About 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 to Produce 3Mtpy of High Purity Apatite Concentrate at the Lac a
Paul Project, Québec,
Canada
" released on
November 13, 2013
). The Company has 202,890,210
shares outstanding.
Qualified
Person
Raphael Gaudreault
, eng., Qualified Person by NI 43-101, has approved the technical disclosure in
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, information relating to the advancement of a downstream phosphoric acid
project, the acceleration of the discussions with other parties in connection with the 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 labor 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/January2025/08/c6566.html
%SEDAR: 00003556E
For further information:
Contact Information: Source: Raphael Gaudreault, COO, Tel. : 418-590-
1318 [email protected]; Info: Brian Ostroff, President Tel. : 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 08:00e 08-JAN-25