Arianne Phosphate Reports Corporate and Financial Results for Second Quarter 2019 DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTC ( USA )
Arianne Phosphate Reports Corporate and
Financial Results for Second Quarter 2019
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
Aug. 29, 2019
/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, 2019. All
amounts are in Canadian dollars unless noted.
"The second quarter of the year was a strong one for the Company," said
Brian Ostroff
, CEO of
Arianne. "During the period, Arianne received continued support by way of investment, added
additional technical personnel and advanced discussions with potential partners and offtakers; all
necessary pieces for the future development of our Lac à Paul mine. Our hope is to bring our world-
class phosphate mine into production as soon as possible and unlock the considerable value for our
investors and stakeholders that come with it."
Q2 2019 Financial and Operational Highlights
In
August 2019
, Arianne has closed on a
$691,050
financing. Under the terms of the financing,
Arianne has issued 1,256,455 units at a price of
$0.55
per unit. Each unit is comprised of one
common share and a half warrant. Each full warrant entitles the holder to purchase one
common share at a price of
$0.75
until
August 21, 2021
.
In
June 2019
, Arianne entered into a non-binding Memorandum of Understanding ("MoU") with
SINOCONST, a large Chinese state-owned enterprise. Under the terms of the MoU, Arianne
and SINOCONST have agreed to work towards a final binding agreement relating to the
development of Arianne's Lac à Paul project which, would include full project financing. On a
parallel track, efforts to secure offtake are expected to be undertaken by SINOCONST in
support of the financing package discussed under the MoU.
In
May 2019
, the Company had closed a
$1.5 million
investment from the Government of
Quebec
by way of private placement into the common shares of Arianne. Under the terms of
the offering, the Government of
Quebec
is subscribing for 3,671,970 common shares of the
Company at a price of
$0.4085
per share.
In
May 2019
, the Company announced that Arianne shareholders have re-elected Messrs.
Dominique Bouchard
,
Brian Ostroff
,
James Cowley
,
David DeBiasio
,
Marco Gagnon
, Siva
Pillay,
Steven Pinney
,
Claude Lafleur
and
Jean Fontaine
as directors of the Company during the
Annual General Meeting of Shareholders of the Company held on
May 29, 2019
in
Montreal
.
Highlights Subsequent to Quarter-End
In
July 2019
, the Company announced efforts surrounding transportation logistics have
significantly progressed. Arianne partnered with several parties to look at greater integration of
aluminum into the truck trailer design. Through this initiative over the past year, Arianne and its
partners have advanced a design that will be able to reduce the weight of the transport trucks
and allow for a greater payload per run. Once integrated, this will result in fewer trucks on the
road, increasing safety and reducing the overall environmental impact. As well, this design will
bring about greater economies of scale, resulting in a reduction in the cost of transporting
Arianne's phosphate concentrate to port and thus, the overall operating cost for its project.
In
July 2019
, Arianne announced the addition of
Raphael Gaudreault
to its team. Raphael will be
assuming the position of Director of the mining sector and comes to Arianne after most recently
serving as Manager Planning and Mining Performance at Arcelor.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash
flow in Q2 2019. In the second quarter ended
June 30, 2019
, the Company incurred
net losses of
$
0.6 million (M)
for the three-month period and
$1.2M
for the six-month period. For the same
period in 2018, the net loss incurred was
$0.04M
for the three-months and
$0.7M
for the six-month
period of 2018.
Liquidity
At
June 30, 2019
, the Company had
$1.2M
cash on hand. These funds will be allocated towards
general working capital and advancing development of Lac à Paul in 2019.
Outlook
Through the rest of 2019, Arianne will be focused on the ongoing advancement and development of
its Lac à Paul project. Expected milestones include:
Complete partnership and financing arrangements;
Continue to enhance the value of the project through project optimization;
Continue our ongoing dialogue with Stakeholders.
Arianne's Management Discussion and Analysis and condensed consolidated interim financial
statements for the six
month period ended
June 30, 2019
are available on the Company's website
and on SEDAR at
www.sedar.com
.
As well, the Company today has announced the departure of Mr.
David DeBiasio
from its Board of
Directors. Arianne wants to thank Mr. DeBiasio for his considerable contribution to the Company
over the years, helping it move through the exploration stage towards development.
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 (Feasibility Study released in 2013). The Company has
111,438,250 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.
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%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 29-AUG-19