Arianne Phosphate Reports Financial Results FOR Q4 and Ye 2021 DAN: TSX-V ( Canada ) JE9N: Fse ( Germany ) Drrsf: OTC ( USA )
ARIANNE PHOSPHATE REPORTS FINANCIAL
RESULTS FOR Q4 AND YE 2021
DAN: TSX-V (
Canada
)
JE9N: FSE (
Germany
)
DRRSF: OTC (
USA
)
SAGUENAY, QC,
March 30, 2022
/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, is
pleased to report its financial results for both the three and twelve-month periods ended
December
31, 2021
. All amounts are in Canadian dollars unless noted.
Post 2021 Highlights
In
February 2022
, Arianne announced that it has initiated a research program in collaboration
with the Environmental and Biotechnology Research Group of the Riviere-de-Loup Cegep aimed
at the development of a new breed of fertilizers using organic waste and Arianne's high-purity,
low-contaminant phosphate concentrate.
2021 Highlights
In
December 2021
, Arianne announced that it was working with the University of
Quebec
in
Trois-Rivières ("UQTR") to assess the use of Arianne's high-purity phosphate concentrate in
electrolysers that produce hydrogen for use in hydrogen fuel cells. UQTR's work is focusing on
designs around the proton exchange membrane ("PEM").
In
November 2021
, the Company announced that following preliminary test work, conducted in
collaboration with several battery industry participants, the Company was sending out its high-
purity phosphate concentrate for a more detailed analysis. This next stage of testing has been
designed to meet specifications provided by a major battery producer by way of MoU and,
through an independent facility that is a producer of purified phosphoric acid.
On
June 4
th
2021, the Company closed an equity financing in the amount of
$5,750,000
. Under
the terms of the financing, Arianne has issued 11,500,000 units at a price of
$0.50
per unit.
Each unit is comprised of one common share and one-half warrant. Each full warrant entitles the
holder to purchase one common share at a price of
$0.71
until
June 4, 2023
.
In
April 2021
, the Company announced that it had reached an agreement in principle with the
Port of Saguenay regarding the future maritime loading facility on the north shore of the
Saguenay River. This Agreement will allow for both the Company and the Port to finalize details
surrounding the costs, construction and operation of the facility from which Arianne will be
shipping its phosphate concentrate globally. The final agreement will cover the use of the facility
for an initial period of 30 years, thereafter renewable twice for periods of 10 years.
In
April 2021
, Arianne partnered with the Quebec Center of Geomatics (CGQ), to advance
research and development on a new method for the design and future monitoring of the
Company's tailings storage facility. This work will use geomatic and remote sensing tools
combined with artificial intelligence that should greatly improve the safety aspects of Arianne's
operations.
In
March 2021
, the Company announced the restructuring of its credit line and loans. For the
credit line, the Lender has exercised 26,780,000 warrants into the Company's common shares,
thereby reducing the credit facility from
$31,496,897
to
$24,892,949
, a reduction of
$6,603,948
. The credit facility was extended for a period of 5 years at an annual interest rate of
8%. The annual interest can be paid by the Company, at its sole option, either in cash or in
common shares of the Company. The Company issued 32,000,000 warrants at an exercise
price of
$0.33
per share for a period of 5 years. The Lender shall not be entitled to exercise
warrants which would result in the Lender holding, following such exercise, on a partially diluted
basis, more than 19.9% of the issued and outstanding common shares of the Company, except
under limited circumstances. The Company will increase the buyback purchase price of the
existing production fee granted in favor of the Lender to
$11.25M
.
Arianne converted its existing loans and working capital facility. The holders of
$5,970,155
of
these facilities had their debt converted into common shares of the Company at a price of
$0.275
per share. As a result of the debt conversion, the Company had issued a total of
21,709,655 common shares to such debt holders. The Company also canceled 11,028,584
warrants that were originally issued with the loans and working capital facility.
Financial Summary
Arianne is a development-stage company and, as such, did not generate revenue or positive cash
flow in 2021. In the fourth quarter and full-year period ended
December 31, 2021
, the Company
incurred respective net losses of
$1.7
and
$8.3M
, compared to
$1.6M
and
$5.9M
in the comparable
periods in 2020. The higher losses are mainly explained by higher noncash borrowing costs. Since
the Company is currently in a period of raising funding for its project through financing and offtake
agreements and is not carrying substantial technical work, the Company has suspended the
capitalization of its borrowing costs until further technical work is done on the project.
Outlook
In 2022, Arianne will be focused on the ongoing advancement and development of its Lac à Paul
project. Expected milestones include:
Advance its 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 Financial Statements for the three- and twelve-
month period ended
December 31, 2021
, are available on the Company's website and on SEDAR at
www.sedar.com
.
Qualified
Person
Raphael Gaudreault
, eng., Qualified Person by NI 43-101, has approved this release. Mr.
Gaudreault 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
185,475,310 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 be 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 approval, 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:
http://www.newswire.ca/en/releases/archive/March2022/30/c4691.html
%SEDAR: 00003556E
For further information:
Source : Raphael Gaudreault, COO, Tel. : 418-549-7316,
[email protected]; Info: Brian Ostroff, President, Tel. : 514-908-4202,
CO: Arianne Phosphate Inc.
CNW 17:02e 30-MAR-22