Arianne Phosphate reports corporate and financial results for second quarter 2018 DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTC ( USA )
Arianne Phosphate reports corporate and
financial results for second quarter 2018
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
Aug. 23, 2018
/CNW Telbec/ -
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,
reported its financial results for the three-month and six-month period ended June 30, 2018. All
amounts are in Canadian dollars unless noted.
"We continue to move our project towards development," said
Brian Ostroff
, CEO of Arianne
Phosphate. "Since the beginning of the year, the industry has rebounded from a five-year slump with
phosphate prices now up about 25% year to date. This change in macro coupled with Arianne's own
advancements, has been very helpful in our negotiations with offtakers, financiers and partners and,
we continue to see very tangible interest and support for our Lac à Paul project."
Q2 2018 Financial and Operational Highlights
In
April 2018
, the Company announced that it received a grant of
$1.5 million
from the Ministry
of Energy and Natural Resources of
Quebec
. This funding has been provided as part of the
Government'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 demand from potential customers and, to conduct further
pilot-scale tests. The tests will be conducted at COREM (Research Consortium for the
Treatment and Processing of Mineral Substances) in
Quebec City
, where the Company
conducted its previous pilot-scale tests, and, materials will be sent to parties that have
expressed a strong interest in pursuing some form of offtake and/or a strategic partnership with
Arianne.
Highlights Subsequent to Quarter-End
In
August 2018
, the company announced that it has partnered with the Province of
New
Brunswick
to further its review of constructing a phosphoric acid plant in
Belledune, New
Brunswick
. As part of this agreement, the Government, through Opportunities New Brunswick
("ONB"), will provide a financial contribution toward the cost of a prefeasibility study, the next
step in Arianne's assessment of its downstream opportunity.
In
August 2018
, the company announced hat it entered into a Memorandum of Understanding
("MoU") for the supply of sulphuric acid. Aside from phosphate rock, a phosphoric acid plant
would also require a supply of sulphuric acid that could be consistently delivered in timely
fashion. It is on this basis, that Arianne has entered into an MoU with a large marketer of
sulphuric acid.
In
July 2018
, the company announced that Arianne shareholders have reelected Messrs.
Dominique Bouchard
,
Brian Ostroff
,
James Cowley
,
David DeBiasio
,
Marco Gagnon
, Siva Pillay
and
Steven Pinney
as directors of the Company during the Annual General Meeting of
Shareholders of the Company held on
July 10, 2018
in
Montreal
.
On
July 12, 2018
, the Company extended the term of 2,815,500 common share purchase
warrants issued as part of a private placement closed on
July 31, 2014
for a gross proceed of
$5,631,000
. Each warrant, as part of the issued units, entitles its holder to purchase one
common share of the Company at an exercise price of
$1.25
per common share until
July 31,
2018
. The Company has elected to extend the expiry date of the warrants to
July 31, 2019
. No
other term will be amended.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash
flow in Q2 2018. In the second quarter ended
June 30, 2018
, the Company incurred net losses of
$0.2
for the three-month period and
$0.9M
for the six-month period. This compares to a net loss of
$0.8M
for the three-months and
$1.6M
for the six-months period in the comparable periods of 2017.
Liquidity
At
June 30, 2018
, the Company had
$1.59M
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
June 30, 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 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/August2018/23/c6025.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, brian.ostroff@arianne-
inc.com
CO: Arianne Phosphate Inc.
CNW 17:00e 23-AUG-18