- ISSUES WARRANTS AS PART OF AN INTEREST DEFERRAL AGREEMENT -
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, March 16, 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, today announced that it has successfully completed a customer trial program that produced a phosphate concentrate with a superior grade and lower contaminants than previously ever achieved by the company.
Conducted by Corem, an engineering firm specializing in providing a wide range of mineral processing and analytical services to mining companies, the customer trial produced 1.2 tonnes of phosphate concentrate with a grade of 40.0% of P205 and 0.03% of contaminants. These tests were completed by adding an additional step beyond Arianne's already optimized metallurgical process (see the Press Release dated May 22, 2014). The results surpass previous metallurgical test work that had produced a P205 concentrate of 38.8% with 0.089% of contaminants.
"The results of the customer trial are extremely encouraging and underscore the progress that we continue to make at our Lac à Paul project," said Jean-Sebastien David, Chief Operating Officer of Arianne Phosphate. "Of particular note, the customer trial produced a concentrate with a further reduced presence of aluminum, iron and magnesium in addition to the nearly non-existent levels of some extremely deleterious elements such as uranium and cadmium. We expect that these excellent results will allow us to produce a phosphate concentrate that exceeds the standards needed for commercial applications of our product. Just as important, our latest results confirm our belief that our concentrate will be priced at a premium."
The customer trial was completed with input from several organizations who may potentially become buyers of Arianne's phosphate concentrate product. The organizations have indicated that a reduced level of contaminants will provide an advantage for Arianne's phosphate concentrate, particularly for the production of concentrate used in specialized commercial applications.
Issues Warrants as part of interest payment deferral agreement
Arianne also announced that it has received conditional approval from the TSX Venture Exchange to issue 400,000 non-transferable common share purchase warrants (the "Warrants") to Mercury Financing Corp. ("Mercury"). The grant is due to an agreement executed today to defer approximately $600,000 in interest payments owed to Mercury related to its two credit facilities of $10 million and $2.5 million (collectivelly, the "Credit Facilities") entered into by Arianne in 2012 and 2013 respectively. The interest payments will be deferred through the current terms of the Credit Facilities period (December 31, 2015).
The Credit Facilities were used to complete Arianne's feasibility study for its Lac à Paul project. Each Warrant entitles Mercury to purchase one common share of Arianne at a price of $0.74 per share until March 16, 2016. The warrants are subject to a hold period of four months and one day expiring on July 17, 2015.
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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