Arianne Phosphate reports corporate and financial results for first quarter 2014
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, May 29, 2014 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac à Paul Phosphate Project in Quebec's Saguenay region, reported its corporate and financial results for the first quarter ended March 31, 2014. Arianne's Management's Discussion and Analysis (MD&A) and Financial Statements for the quarter are available on the Company's website and on SEDAR at www.sedar.com.
"Our work in Q1 2014 speaks to our commitment in advancing Lac à Paul and maximizing its economic potential," stated Brian Kenny, CEO of Arianne Phosphate. "We continue to focus on our major project development objectives: defining and evaluating various project funding alternatives; exploring Lac à Paul's significant upside resource potential; optimizing cash operating costs; negotiating agreements with the First Nation communities; and, working with the government authorities to obtain our environmental permit. Our focus on these critical areas will continue throughout 2014."
Q1 2014 Corporate & Financial Highlights
Commenced a new drilling program and metallurgical test program aimed at
increasing the mineral resources and finalizing the process flow sheet;
Recognized as a 2014 TSX Venture 50, a ranking of the top performing
companies on the TSX.V;
Commissioned a scoping and market study on the feasibility of processing
Arianne's phosphate rock into merchant grade acid (MGA) or MAP/DAP
- Finalized a study on the local socio-economic benefits of the Lac à Paul Project;
- Confirmed Lac à Paul would create $12B of economic benefits, with the majority of the spin-offs in the Saguenay region, marking the largest economic impact of any mining project in Quebec in over a decade.
Post - Q1 2014 Highlights
Completed sale of its non-core Opinaca and Black Dog properties, which
is consistent with its corporate strategy to focus on Lac à Paul's
- Announced results, including the:
- Addition of 78Mt of inferred resource at 5.34% P2O5 at the Nicole Zone
Identification of a new potential target zone in the range of 260Mt -
390Mt with grades ranging from 5.34% to 7.13% P2O5
- Announced preliminary results from metallurgical optimization tests which confirm that Arianne will be able to realize cost savings and lower their per tonne production costs of phosphate concentrate by $3.91. By eliminating two reagents, Arianne will realize a cost savings of $10,862,000/year over the 26 year project life or ~$280 Million.
In Q1 2014, Arianne did not generate revenue or positive cash flows as the Company is still a development-stage entity. In the three months ended March 31, 2014, the Company incurred a net loss of $1.4 compared to a loss of $2.2M in the same period in the 2013. The Company's net loss and cash burn are consistent with our budget.
At quarter-end, the Company had $5.28M cash on hand and working capital of $4.48M, which includes $1.2M in cash reserved for exploration and evaluation expenses. The Company's working capital will be allocated towards completing critical project development work in 2014. Based on current spending estimates for the year, Arianne anticipates it will need additional financing in 2014.
Other Corporate Updates
The Company announces that in December 2013, it proceeded with the issuance of 37,877 common shares at a price of $1.32 per share to officers and employees of the Company (the "Beneficiaries") as partial payment of year-end bonuses approved by the Board of Directors. In addition to the regulatory 4 month hold period to which the 37,877 shares are subject, such shares may not be sold by the Beneficiaries for a period of one year following their date of issuance.
Furthermore, on April 10, 2014, the Company announced that it had retained the services of Torrey Hills Capital for investor relations services for a 12-month period. The Company would like to correct this statement as the term of the Torrey Hills Capital engagement is for a three-month period.
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 87,087,755 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.
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Resource Investing News: http://resourceinvestingnews.com/?s=Arianne
Forward Looking Statements and 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"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. 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. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
SOURCE Arianne Phosphate Inc.For further information:
Brian Kenny, CEO
Derek Lindsay, CFO