DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, Aug. 26, 2015 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), 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- and six-month periods ended June 30, 2015. All amounts are in Canadian dollars unless noted.
"The second quarter was yet again another exciting and productive quarter for Arianne," commented Jean-Sébastien David, Arianne Phosphate's Chief Operating Officer. "Although many segments of the resource sector were adversely affected by sharply lower commodity prices, the fertilizer sector provided some relative stability and Arianne was able to make significant progress towards its key milestones. Arianne continued to work closely with government officials and agencies, as well as local stakeholders, to complete the formal public hearing process aimed at securing permitting for Lac à Paul. Our work with local stakeholders also led to the signing of a collaboration agreement with the three Innu First Nations. Operationally, our ongoing efforts to reduce our project's expected operating costs, led to an additional 10% savings, or an anticipated cost of US$79 per ton. Combined, these initiatives demonstrate both our commitment to advancing development of Lac à Paul, as well as to the overwhelming support we have received for the Project's build-out. With permitting for our project expected relatively soon, we are very well positioned to capitalize on the growing demand for a secure and stable phosphate supply."
Q2 2015 Financial and Operational Highlights
- Continued its efforts to secure permitting for its Lac à Paul project. The Company worked closely with the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC), Bureau d'Audiences Publiques sur l'Environnment (BAPE) and local stakeholders, providing information, hosting public hearings and responding to inquiries about Lac à Paul's economics and project viability. Arianne anticipates receiving an operating permit in the last quarter of 2015.
- Signed a cooperation agreement with Innu First Nations from Pessamit, Essipit and Mashteuiatsh in support of Lac à Paul's development. Arianne and the three Innu First Nations are currently collaborating on the specifics to be included in the Impact and Benefit Agreements.
- Reduced expected production costs (OPEX) for its premium quality phosphate concentrate by US$8 per ton to approximately US$79 per ton freight on board (FOB) Port of Saguenay.
- Appointed James Cowley as interim Chief Financial Officer for the Company. Mr. Cowley, a metallurgical engineer with an MBA in Finance, is a director of the Company and a member of its audit Committee. Mr. Cowley had previously served as President of Arianne from August of 2011 until August of 2014.
- Shareholders re-elected Messrs. Pierre Fitzgibbon, Dominique Bouchard, James Cowley, David DeBiasio, Marco Gagnon, Brian Ostroff, Siva Pillay, and Steven Pinney as Directors of the Company's Board.
Highlights Subsequent to Quarter-end
- Received approval for listing in Mergent TM Manual and News Reports. The listing provides the Company with Blue Sky exemption in 39 U.S. states for the purposes of market activities.
- The Company extended the term of 1,217,500 common share purchase warrants ("Warrants") issued as part of a private placement which was closed on July 29, 2013. Each of the Warrants, which were part of the units being issued, entitles its holder to purchase one common share of the Company at an exercise price of $1.45 per common share until July 29, 2015. The Company has elected to extend the expiry date of the Warrants to January 27, 2017. No other Warrant terms were amended.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q2 2015. In the second quarter ended June 30, 2015, the Company incurred a net loss of $2,029,395 for the six-month period ended June 30, 2015. This compares favourably to a net loss of $3,045,451 in the comparable period of 2014. 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 focus primarily on permitting activities and financing alternatives, which require less working capital. The Company's net loss and cash burn are consistent with other development stage mining companies.
At June 30 2015, the Company had $1,367,172 cash on hand that continues to be allocated towards general working capital and advancingthe development of its Lac à Paul project. Based on current spending estimates for future project development, Arianne will need financing by the end of 2015.
Arianne remains committed to advancing development of its Lac à Paul Project. The Company anticipates completing a number of milestones prior to year-end, including:
- Continued optimization of operating and capital expenses;
- Securing environmental permitting from appropriate government agencies; and
- Securing strategic partners and appropriate levels of funding.
Arianne's Management Discussion and Analysis and Financial Statements for the three- and nine-month periods ended June 30, 2015 are available on the Company's website and on SEDAR at www.sedar.com
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 95,325,755 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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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.
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