Arianne Phosphate Receives Strategic Investment from a Global Mining Company DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE RECEIVES
STRATEGIC INVESTMENT FROM A GLOBAL
MINING COMPANY
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
Oct. 10, 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 financing by way of an unsecured convertible debenture from a
global mining company (the "Strategic Investor"). Arianne owns the fully permitted Lac à Paul
phosphate mining project and is currently advancing work on its proposed downstream phosphoric
acid project. The proceeds received from the financing will be used to advance the Company's work
on the downstream facility to better quantify the opportunity. The economic benefits of the
downstream facility are driven by the conversion of regionally sourced igneous phosphate
concentrate into a highly sought downstream product that requires additional supply, particularly
originating outside of
China
.
"This is a significant step forward for the project and the Company," said
Brian Ostroff
, President of
Arianne Phosphate. "This investment comes from a group that has the skill-set to help advance the
project and provide us with a catalyst to aggressively move forward. In addition, demonstrating the
ability to attract this investment can facilitate the project's advancement and help accelerate
discussions with other parties that have expressed a strong interest in the project or shown interest
in certain aspects of the project such as receiving product. This investment is a big plus for Arianne,
its stakeholders, investors and the Saguenay region."
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 and subject to customary adjustments, to convert
(i) the principal amount of the convertible debenture at a price of
C$0.35
per common share, and (ii)
the accrued interest thereon at a price per share equal to the greater of (a)
C$0.35
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 investment remains subject to the final acceptance 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
.
Downstream Production
The proceeds from the investment will be used to advance the Company's previously announced
intention to build and operate a downstream purified phosphoric acid ("PPA") plant. As highlighted in
the preliminary study, Arianne is looking to construct a facility in the Saguenay region of
Quebec,
Canada
that would convert regionally produced phosphate concentrate into PPA. The two grades of
phosphoric acid that would be produced at the facility are a very high-purity PPA known as "white
acid", used in the production of lithium-iron-phosphate (LFP) batteries and direct food additives and,
a second-tier phosphoric acid used in the production of specialty fertilizers and animal feeds. The
facility would look to produce 350,000 tonnes annually of high-purity PPA and 220,000 tonnes of the
second-tier phosphoric acid, making it a substantial Western producer of battery and food-grade
PPA. Some of the benefits associated with the proposed facility include: easy access to premium
phosphate concentrate, pre-existing logistics, beneficial ESG characteristics and strong economics.
In closing,
Raphael Gaudreault
, Arianne's Chief Operating Officer added "this investment continues
to demonstrate the interest and opportunity in critical minerals in general, and our project in
particular. The West has come to understand the importance of diversifying away from
China
when it
comes to supply chains and, involving global miners with both the skills and financial ability to assist
with these projects will be instrumental if the West is going to be successful."
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 advancement and potential of the proposed
downstream phosphoric acid project, including the construction, operation and production
of the PPA plant, the acceleration of the discussions with other parties in connection with
the project, and the anticipated results of the investment by the Strategic Investor for
Arianne, its stakeholders, investors and the Saguenay region. 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/October2024/10/c8931.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 10-OCT-24