Arianne Phosphate Reports Corporate and Financial Results for First Quarter 2018 DAN: TSX-V (Canada) JE9N: FSE (Germ any) DRRSF: OTC (USA)
Arianne Phosphate Reports Corporate and Financial Results
for First Quarter 2018
DAN: TSX-V (Canada)
JE9N: FSE (Germ any)
DRRSF: OTC (USA)
SAGUENAY, QC, May 23, 2018 /CNW Telbec/ - Arianne Phosphate (the "Com pany" or "Arianne") (TSXV: DAN) (OTC: DRRSF)
(FRANKFURT: JE9N), a developm ent-stage phosphate m ining com pany, advancing the Lac à Paul project in Quebec's Saguenay-Lac-Saint-
Jean region, reported its financial results for the three-m onth period ended March 31, 2018. All am ounts are in Canadian dollars unless noted.
"The first quarter of the year has been a very busy one for our Com pany," said Brian Ostroff, CEO of Arianne Phosphate. "Year to date, Arianne
has m ade steady progress working with potential funders and partners for our project. As well, we are also seeing the recovery in phosphate
prices from m ulti-year lows driving interest from potential offtakers. Ultim ately, we believe that with so few new projects com ing on-stream , our
strong econom ics and our safe geopolitical jurisdiction will all be very supportive in our m ission to get the Lac à Paul project developed and,
unlock trem endous value for our investors and stakeholders."
Q1 2018 Financial and Operational Highlights
In March 2018, the Com pany announced that it has received an investm ent from the Governm ent of Quebec by way of private placem ent
of $1,407,000 into the com m on shares of Arianne. Under the term s of the offering, the Com pany issued 2,333,333 units at a price of $0.63
per unit. Each unit was com prised of one com m on share and one half of one com m on share purchase warrant. Each warrant entitles its
holder to purchase one com m on share at a price of $0.85 per share until March 14, 2021.
In March 2018, the Com pany announced, the start of research and developm ent work to integrate alum inum in the design of the trailer that
will transport the phosphate concentrate from the Lac à Paul m ine to the deepwater port that will be located in Sainte-Rose-du-Nord. The
work will be done by the National Research Council of Canada (NRC) and Alcoa Innovation. In order to carry out this m ajor work,
Arianne will be able to rely on confirm ed financial support from the Centre québécois de recherche et de développement de l'aluminium
(CQRDA) and the Société de la vallée de l'aluminium (SVA).
In January 2018, the Com pany announced, the extension on the term of 1,217,500 com m on share purchase warrants ("Warrants") issued
as part of a private placem ent which closed on July 29, 2013 for gross proceeds of $2,678,500. Each of the Warrants, which were part of
the units being issued, entitles its holder to purchase one com m on share of Arianne (a "Com m on Share") at an exercise price of $1.45 per
Com m on Share until January 27, 2018. Arianne has elected to extend the expiry date of the Warrants to July 27, 2018. No other Warrant
term s were am ended.
Highlights Subsequent to Quarter-End
In April 2018, the Com pany announced that it received a grant of $1.5 m illion from the Ministry of Energy and Natural Resources of Quebec. This
funding has been provided as part of the Governm ent's plan to help advance the Quebec phosphate (apatite) sector. Arianne will be using this
funding in support of its previously announced program to produce additional high-purity phosphate concentrate to fulfil dem and from potential
custom ers and, to conduct further pilot-scale tests. The tests will be conducted at COREM (Research Consortium for the Treatm ent and
Processing of Mineral Substances) in Quebec City, where the Com pany conducted its previous pilot-scale tests, and, m aterials will be sent to
parties that have expressed a strong interest in pursuing som e form of offtake and/or a strategic partnership with Arianne.
Financial Sum m ary
Arianne is a developm ent-stage com pany and, as such, did not generate revenue or positive cash flow in Q1 2018. In the first quarter ended
March 31, 2018, the Com pany incurred net losses of $0.7M for the three-m onth period. This com pares to a net loss of $0.8M for the three-
m onth period of 2017.
Liquidity
At March 31, 2018, the Com pany had $1.17M cash on hand. These funds will be allocated towards general working capital and advancing
development of Lac à Paul in 2018. Based on current spending estimates for future project development, Arianne will need additional financing in
2018.
Outlook
Through the rest of 2018, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project. Expected milestones
include:
Secure financing for construction and development of the Lac à Paul project;
Continue optimization of the Lac à Paul project including reducing cash operating production costs and capital expenses;
Sign an "Impact and Benefit Agreement (IBA)" with the First Nations; and
Assist the Port of Saguenay in securing their environmental permitting from CEEA.
Arianne's Management Discussion and Analysis and condensed consolidated interim financial statements for the three
month period ended
March
31, 2018
are available on the Company's website and on SEDAR at
www.sedar.com
.
Qualified Person
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company's Chief Operating
Officer.
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. The Company has 105,803,943 million shares outstanding.
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 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 labour 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 approvals, 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 with multimedia: http://www.newswire.ca/en/releases/archive/May2018/23/c2626.html
%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, [email protected]
CO: Arianne Phosphate Inc.
CNW 17:00e 23-MAY-18