Arianne Phosphate reports financial results for Q4 and YE 2016 DAN: TSX-V (Canada) JE9N: FSE (Germany) DRRSF: OTC (USA)
Arianne Phosphate reports financial results for Q4 and YE 2016
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, March 22, 2017 /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 both the three and twelve month periods ended December 31, 2016. All amounts are in
Canadian dollars unless noted.
"The year 2016 was one of hard work and advancement for the Company," commented Brian Ostroff,
CEO of Arianne Phosphate. "Our recently announced agreements with Hydro-Québec, Constructions
Proco Inc., Rio Tinto and ABB Inc. have all come about as a direct result of the team's hard work over the
past year and has catapulted the project forward. Our belief is that we will be able to continue to
negotiate and close on significant agreements, technical, financial and strategic, and see Lac à Paul
advance."
2016 Financial and Operational Highlights
In September 2016, the Company exercised op tions held on land at Sainte-Rose-du-Nord
representing $709,650. The land is projected to be the future site of the port and is required for the
development of the maritime terminal as well as the access roads and supporting infrastructure. It is
from this site that Arianne will be shipping its high purity phosphate concentrate to customers around
the world.
In October 2016, the Company closed a second tranche of a loan financing representing $1.1 million
with various third party lenders. The terms are the same as the first tranche (see below).
In September 2016, the Company closed on a $3 m illion loan with various third party lenders (the
"Loan"). The loan will bear interest at 8%, paid semi-annually and has a maturity of 3 years with the
Company having the ability to repay the loan after one year at its option. As part of the loan, the
Company has issued non-transferable warrants in the amount of 800 per $1,000 face value (for a
total of 2,400,000 warrants), with each warrant entitling the holder to purchase one common share of
the Company at a price of $1.25 per share for a term of 3 years expiring on September 28,
2019. Additionally, following the expiry of the regulatory hold period, should the closing price of
Arianne's common shares on the TSX Venture Exchange (the "Exchange") be equal to or higher
than $2 for 10 consecutive days, the Company shall have the right to force the exercise of the
warrants by providing the warrant holders with a 30-day notice period, following which the warrants
will automatically expire.
In June 2016, the Company announced that they hi red Endeavour Financial to act as their project
finance advisor. Endeavour's role is to work with management in reviewing various financing
strategies and assist in discussions with potential lenders and partners.
In March 2016, the Board appointed Jean Lamarre as the new Chairman of the Board. He is highly
skilled in international business development, finance and corporate strategy.
As well, the Company announced the appointment of a new CEO, Brian Ostroff. His past experience
in finance and capital markets will help as the Company pursues partnerships and financing
arrangements.
The Company met deadlines for the port facilities pr oject currently being carried out by the Port of
Saguenay. The environmental studies are underway for the Canadian Environmental Assessment
Agency ("CEAA"). This significant stage in the project's development will allow Port of Saguenay to
obtain the necessary government approval in order to begin the construction of the loading facilities
and then obtain the permits requested.
Highlights Subsequent to Year-end
In March 2017, Arianne signed a memorandum of understanding ("MOU") agreement with ABB Inc.
to provide engineering, procurement and support services for integrated electrification and
automated mining solutions. As part of this MOU, ABB has also committed to work with Arianne in
helping to secure financing for this portion of the project and to that end, has already made
introductions.
In February 2017, the Company secured a favourabl e power agreement with the Ministry of Energy
and Natural Resources. This agreement confirms that an additional power bloc of 14-MW from
Hydro-Québec will be made available for the Lac à Paul project's ore processing facilities. This
power bloc now totals 129-MW. With this additional power bloc, Arianne will be able to supply all of
its processing facilities with hydroelectric power, making it the apatite concentrate producer with the
lowest greenhouse gas (GHG) emissions on the market. A significant portion of the whole power
bloc of 129-MW, i.e. 42-MW, will be used for the electric dryer to dry the apatite concentrate. The
innovative technology integrated into the dryer will prevent the equivalent of 86,000 metric tonnes
per year of CO2 emissions. It will also have a positive economic impact on the Lac à Paul project.
In February 2017, Arianne signed an MOU with Construction Proco Inc. The agreement will cover
structural and architectural engineering, steel fabrication and construction of the mill process and
utilities buildings and, on-site stock pile storage.
In January 2017, the Company signed a project agreement with Rio Tinto to review potential
maritime services sharing. This project agreement provides for discussions focused on Arianne's use
of ships serving Rio Tinto to deliver phosphate concentrate to international markets and should
provide both environmental and economic benefits.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in
2016. In the fourth quarter and full-year periods ended December 31, 2016, the Company incurred
respective net losses of $0.7M and $3.1M, compared to $1.0M and $3.9M in the comparable periods in
2015. The Company's net loss and cash burn are consistent with other development stage mining
companies.
The year-over-year decline in net loss was due to a series of measures that the Company undertook in
order to reduce its expenses, as well as to primarily focus on permitting activities and financing
alternatives, which required less working capital.
Liquidity
On December 31, 2016, the Company had $2.2M cash on hand and access to its $0.3M remaining on its
credit facility. These funds will be allocated towards general working capital and advancing development
of Lac à Paul in 2017. Based on current spending estimates for future project development, Arianne
anticipates it will need additional financing before the end of 2017.
Outlook
In 2017, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project.
Expected milestones in 2017 include:
Complete partnership and financing arrangements;
Continue to enhance the value of the pr oject through project optimization; and
Assist the Port of Saguenay in rece iving their approval from the CEAA to start the construction of the
loading facilities;
Continue our ongoing dialogue with First Nations.
Arianne's Management Discussion and Analysis and Financial Statements for the three- and twelve-
month periods ended December 31, 2016, 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% P2O5 with
little or no contaminants. The Company has 97,648,080 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.
To view the original version on PR Newswire, visit:
http://www.newswire.ca/en/releases/archive/March2017/22/c6187.html
%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,
[email protected]; Medias: Joëlle Brodie, Tel. : 418-549-7316, joelle.brodie@arianne-
inc.com
CO: Arianne Phosphate Inc.
CNW 17:00e 22-MAR-17