Arianne Phosphate Reports Corporate and Financial Results for Third Quarter 2018 DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTC ( USA )
Arianne Phosphate Reports Corporate and
Financial Results for Third Quarter 2018
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
Nov. 14
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 nine-month period ended September 30, 2018.
All amounts are in Canadian dollars unless noted.
"Arianne had a strong and productive quarter," said
Brian Ostroff
, CEO of Arianne Phosphate.
"Over the most recent quarter, we have made progress on several initiatives that we believe are key
to getting our project financed. The signing of our first commercial offtake, the advancement of our
exploratory work surrounding a potential phosphoric acid plant and, most recently, the Port of
Saguenay's receipt of its permit to allow for a maritime facility on the north shore have all signaled
that things are moving in the right direction for Arianne. In the coming months we hope to continue to
hit the milestones necessary to begin the development of our Lac à Paul deposit and unlock its value
for investors and stakeholders."
Q3 2018 Financial and Operational Highlights
In
September 2018
, the Company announced the formal execution of its first offtake agreement.
Under the terms of the Agreement, the buyer has entered into a long-term contract to purchase
Arianne's high-purity phosphate concentrate which, will be shipped to the buyer's processing
plant for further processing into downstream phosphate products. The offtake agreement also
has a mechanism whereby it can be extended beyond the initial contract period and applies
pricing that accounts for the high quality of Arianne's concentrate.
In
August 2018
, the Company announced the appointment of Mr.
Claude Lafleur
, agr, to the
Company's Board of Directors. In conjunction with Mr. Lafleur's appointment to the Board, he
has been granted 200,000 stock options.
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 it has 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. This agreement will allow the Company to work with a strong industry player that
can provide the venture ongoing guidance on sulfuric acid pricing, logistics and industry
supply/demand trends; all necessary aspects in determining the project's viability.
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
.
Highlights Subsequent to Quarter-End
In
October 2018
, the Company announced that the Port of Saguenay received a favorable
decision with regards to the construction of a maritime terminal facility on the north shore of the
Saguenay River. Granted by the Minister for the Environment and Climate Change, the
Honorable Catherine McKenna, this decision now paves the way forward for the construction of
a terminal that will allow for the shipping of Arianne's phosphate concentrate to customers
around the world.
In
October 2018
, the Company announced its association with the Saguenay Lac St-Jean
Regional Economic Benefits Maximization Committee (CMAX) (referring to 02 Economic
Development (02 ED)). CMAX is a tool that was put in place to maximize the benefits of large
projects. Arianne will benefit from the regional expertise of this group and have access to the
expertise of some 2000 Saguenay Lac St-Jean companies.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash
flow in Q3 2018. In the third quarter ended
September 30, 2018
, the Company incurred net losses
of
$0.5
for the three-month period and
$1.4M
for the nine-month period. This compares to a net loss
of
$0.7M
for the three-months and
$2.2M
for the nine-months period in the comparable periods of
2017.
Liquidity
At
September 30, 2018
, the Company had
$0.9M
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 in the next 12
months.
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.
Arianne's Management Discussion and Analysis and condensed consolidated interim financial
statements for the three
month period ended
September 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 (Feasibility Study released in 2013). 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.
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%SEDAR: 00003556E
For further information:
Contact Information: Source: Jean-Sébastien David, C.O.O., Tel. : 418-
549-7316, [email protected]; Info: Brian Ostroff, C.E.O., Tel. : 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 17:00e 14-NOV-18