Arianne Phosphate Reports Corporate and Financial Results for Third Quarter 2019 DAN: TSX-V ( Canada ) JE9N: FSE ( Germany ) DRRSF: OTC ( USA )
Arianne Phosphate Reports Corporate and
Financial Results for Third Quarter 2019
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
Nov. 26, 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 nine-month period ended September 30, 2019.
All amounts are in Canadian dollars unless noted.
"Despite a very challenging fertilizer macro, Arianne continues to execute on the advancement of its
Lac à Paul project," said
Brian Ostroff
, CEO of Arianne Phosphate. "Over the last quarter, we have
advanced our project on several fronts including, the improvement of transportation logistics, the
receipt of positive initial findings surrounding a downstream phosacid plant and, the ability to attract
additional key personnel to the Arianne team. Discussions with potential financiers and partners are
also ongoing and, we believe, the work the Company is doing now places it in a very good position
to take advantage of a turn in the fertilizer market."
Q3 2019 Financial and Operational Highlights
In
September 2019
, the Company has extended on a
$4.1 Million
loan with various third-party
lenders (the "Loan"). The extended loan will have a maturity of
September 28, 2021
. The loan
bears interest at 8%, paid semi-annually. As part of the loan extension, the Company issued
7,453,800 non-transferable warrants with each warrant entitling the holder to purchase one
common share of the Company at a price of
$0.55
per share for a term of 2 years expiring on
September 28, 2021
.
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
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.
Highlights Subsequent to Quarter-End
In
October 2019
, Arianne has announced that it has received its initial findings back from a
study regarding a downstream phosphoric acid facility. The Company's phosphate concentrate
responded extremely well to the beneficiation process and resulted in the production of up to a
60% P2O5 Merchant Grade Acid ("MGA") compared to the market typical 52% MGA grade.
Furthermore, due to the high-quality nature of the phosphate concentrate input, the gypsum by-
product produced during the process appears to have commercial value, whereas traditional
phosphate concentrates will produce contaminated waste.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash
flow in Q3 2019. In the third quarter ended
September 30, 2019
, the Company incurred
net losses
of $
0.4 million (M)
for the three-month period and
$1.7 M
for the nine-month period. For the
same period in 2018, the net loss incurred was
$0.5M
for the three-months and
$1.4M
for the nine-
month period of 2018.
Liquidity
At
September 30, 2019
, the Company had
$1.1M
cash on hand. These funds will be allocated
towards general working capital and advancing development of Lac a Paul in 2019.
Outlook
Through the rest of 2019 and into the new year, Arianne will be focused on the ongoing
advancement and development of its Lac à Paul project, namely:
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 nine
month period ended
September 30, 2019
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
111,458,250 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 17:10e 26-NOV-19