DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Nov. 17, 2016 /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- and nine-month periods ended September 30, 2016. All amounts are in Canadian dollars unless noted.
"With permit now in hand, our efforts have been centered on moving the project towards development," said Brian Ostroff, CEO of Arianne Phosphate. "The last nine months has seen an increasing momentum in discussions with potential strategic and financial partners as we look to bring Lac à Paul into production. The closing on recent financings and our exercising of land options at the future site of the port are good examples of the work we are doing and, the support we are receiving, to see this project become a reality."
Q3 2016 Financial and Operational Highlights
- The Company has closed on a $3 Million loan with various third party lenders. 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 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.
- The Company has exercised options held on land at Sainte-Rose-du-Nord. 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.
Highlights Subsequent to Quarter-End
- In October 2016, the Company has closed on 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.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q3 2016. In the third quarter ended September 30, 2016, the Company incurred respective net losses of $0.8M for the three month period ($2.4M for the 9 months period). This compares favourably to a net loss of $0.9M for the three months period ($2.9M for the 9 months period) in the comparable period of 2015. The year-over-year decline in net loss was due to reduced expenses as the Company transitioned from more capital intensive activities such as exploration and engineering studies, to a focus primarily on permitting activities and financing alternatives, which require less working capital.
At September 30, 2016, the Company had $2.8M cash on hand and $0.3 million remaining undrawn on its credit facility. These funds will be allocated towards general working capital and advancing development of Lac àPaul in 2016. Based on current spending estimates for future project development, Arianne will need additional financing in 2017.
Through the rest of 2016 and into 2017, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project. Expected milestones include:
- A continued reduction in cash operating production costs and capital expenses;
- Continue our ongoing effort to communicate with our stakeholders and the community;
- Assist the Port of Saguenay in securing environmental permitting from the Canadian Environmental Assessment Agency; and
- Secure financing for construction and development of the Lac à Paul project.
Arianne's Management Discussion and Analysis and condensed consolidated interim financial statements for the three- and nine-month periods ended September 30, 2016 are available on the Company's website and on SEDAR at www.sedar.com.
Arianne has also granted 100,000 options to Torrey Hills Capital in conjunction with their ongoing investor relations activities. The options are exercisable at a price of $0.85 per share . Pursuant to the Company's stock option plan, the options will vest in equal amounts of 25% per quarter. The options will have a two-year term.
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:
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.
Image with caption: "Arianne Phosphate Inc. (CNW Group/Arianne Phosphate Inc.)". Image available at: http://photos.newswire.ca/images/download/20161117_C2946_PHOTO_EN_821940.jpg
For further information: Source: Jean-Sébastien David, C.O.O., Tel. : 418-549-7316, firstname.lastname@example.org; Info: Brian Ostroff, C.E.O., Tel. : 514-908-4202, email@example.com; Medias: Karyna Tremblay, Community Relations Coordinator, Tel. : 418-549-7316, firstname.lastname@example.org