Arianne Phosphate Reduces Debt and Issues Shares as Interest Payment DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTCQX ( USA )
ARIANNE PHOSPHATE REDUCES DEBT AND
ISSUES SHARES AS INTEREST PAYMENT
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTCQX (
USA
)
SAGUENAY, QC
,
March 31, 2023
/CNW/ -
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, today is
announcing that it will issue 3,899,424 common shares at a price of
$0.5107
per share, in lieu of
cash, as its annual interest payment to Mercury Financing Corp. ("Mercury") as at,
March 31
, 2023.
As per the Company's announcement of March of 2021, Arianne reached an agreement with
Mercury whereby Mercury extended its credit facility, reduced the principal of its loan and, reduced
the annual interest rate (
full details of the extension can be found on the Press Release dated
March 18, 2021
). As part of
the agreement with Mercury, Arianne has at its sole option the ability to pay its interest by way of
cash or shares and, such cash amount would have been equal to
$1,991,436
. The Company has
elected to pay this amount in common shares with these securities issued being subject to a hold
period ending
August 1, 2023
.
As well, given Arianne's current cash position, the Company has also elected to reduce its
outstanding debt with Mercury by
$1,000,000
through a one-time cash payment. This reduction in
debt will allow the Company to save on its annual interest expense and reduce the amount currently
owed on its credit facility.
"We are always looking to optimize the resources we have at our disposal," said
Brian Ostroff
,
President of Arianne. "By paying the interest in equity, we continue to maintain a very healthy cash
balance and allows us to keep moving towards our number one objective: advance the project
towards development and unlock the substantial value that will come with that. Further, the recent
sale of a royalty we owned provided additional cash and allows us to reduce the debt we are
holding, resulting in lower annual payments going forward for the Company."
This transaction remains subject to final approval of the TSX Venture Exchange.
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% P
2
O
5
with little or no contaminants (Feasibility Study released in 2013). The Company has
190,377,348 shares outstanding.
Qualified
Person
Raphael Gaudreault
, eng., Qualified Person by NI 43-101, has approved 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, anticipated quality and production of the 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", "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 be 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/March2023/31/c0020.html
%SEDAR: 00003556E
For further information:
Source: Raphael Gaudreault, COO, Tel.: 418-590-1318,
[email protected]; Info: Brian Ostroff, President, Tel.: 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 18:33e 31-MAR-23