Arianne Phosphate Receives Final Acceptance FOR Its Previously Announced Strategic Investment from a Global Mining Company DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE RECEIVES FINAL
ACCEPTANCE FOR ITS PREVIOUSLY
ANNOUNCED STRATEGIC INVESTMENT
FROM A GLOBAL MINING COMPANY
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
Oct. 17, 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 is pleased
to announce that it has received final acceptance from the TSX Venture Exchange for its previously
announced financing by way of an unsecured convertible debenture from a global mining company
(the "Strategic Investor"). Please refer to the news release of
October 10, 2024
for more details
about the investment.
Investment Terms
Under the terms of the investment, the Strategic Investor purchased a convertible debenture in the
principal amount of approximately
C$3.8 million
, that matures in three years and bears interest at
9.5% per annum. Interest payments are added to the principal amount of the convertible debenture,
and as a result, no amounts are required to be repaid by Arianne until the maturity of the instrument.
The Strategic Investor has the option, at any time, to convert (i) the principal amount of the
convertible debenture at a price of
C$0.35
per common share (the "Conversion Price"), and (ii) the
accrued interest thereon at a price per share equal to the greater of (a) the Conversion Price and
(b) the market price at the time the accrued interest is converted, as determined in accordance with
the rules of the TSX Venture Exchange. Upon the Strategic Investor reaching an ownership of at
least 3.0% of the issued and outstanding common shares of Arianne (either through conversion,
open market purchase or otherwise), the Company will enter into an investor rights agreement with
the Strategic Investor that will provide customary participation and top-up rights and a board
nomination right.
The Conversion Price of the convertible debenture is subject to adjustments, including in the event
that the Company issues a convertible debenture or other similar debt-like instrument convertible into
common shares to any person (other than the Strategic Investor or its affiliates) pursuant to a
transaction that is not a common share reorganization, rights offering or capital reorganization (a
"Third Party Debenture Issuance"), in any such case at an effective conversion or exercise price (net
of all fees and commissions associated with such subscription) (the "Third Party Debenture Issuance
Price") that is less than the Conversion Price applicable at the time of such issuance, in which case,
upon closing of such Third Party Debenture Issuance: (i) the Conversion Price for the principal
amount shall automatically be adjusted downwards to the greater of: (a) the Third Party Debenture
Issuance Price; and (b)
$0.19
, and (ii) the conversion price for the accrued interest shall be equal to
the market price at the time such amounts are converted into common shares, as determined in
accordance with the rules of the TSX Venture Exchange, subject to the application of Policy 4.3 –
Shares for Debt
of the TSX Venture Exchange.
The convertible debenture purchased by the Strategic Investor is subject to a four-month hold period
under applicable Canadian securities laws ending on
February 11, 2025
.
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
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 security and the securities into which they are convertible 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 absent registration under, or an applicable exemption from the registration
requirements of, the U.S. Securities Act and applicable state securities laws.
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 investment. 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/October2024/17/c5753.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 17-OCT-24