DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, May 24, 2016 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: 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 first quarter financial results for the three-month period ended March 31, 2016. All amounts are in Canadian dollars unless noted.
Q1 Financial and Operational Highlights
- Appointed Jean Lamarre to the Company's Board of Directors as Chairman. Mr. Lamarre's experience in international business development, finance, and corporate strategy will be significant as Arianne progresses with the development of its Lac à Paul project.
- Named Brian Ostroff as the Company's CEO. Mr. Ostroff's past experience in finance and corporate structuring will help Arianne as it pursues both strategic partnerships and securing the necessary financing to develop the Lac à Paul project.
- Advanced discussions with potential corporate, strategic and financial partners. The discussions centre on determining the types of financing structures and amounts of financing needed to begin construction of the Company's Lac à Paul project.
- Contributed to the port facilities project being carried out by the Port of Saguenay. This work will allow the Port of Saguenay to secure necessary federal government approval for the construction of expanded port facilities.
"2015 was a tremendous year for Arianne as we hit on all of our major milestones," said Brian Ostroff, CEO of Arianne Phosphate. "With Lac à Paul now fully permitted, our first quarter efforts have been focused on discussions with potential corporate, strategic and financial partners aimed at moving the project towards development, and we are pleased with the interest we have been receiving from those we have been in discussions with. The addition of Mr. Lamarre to our Board as Chairman will also help to accelerate our efforts through 2016."
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in the first quarter. In the period ended March 31, 2016, the Company incurred a net loss of $849,935 or $0.01 per share. This compares to a net loss of $891,200 or $0.01 per share for the same period of 2015.The year-over-year decline in net loss was due to a series of measures that the Company implemented to reduce its operating expenses. The Company's net loss and cash burn in Q1 2016 are consistent with other development stage mining companies.
As at March 31 2016, the Company had working capital of $87,357 and access to $2.1 million from its non-revolving credit facility. This compares to negative working capital of $288,027 as at December 31, 2015. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing before the end of 2016.
In 2016, Arianne will be focused on the ongoing advancement and development of its Lac à Paul project. Expected milestones in 2016 include:
- Continue ongoing discussions with potential partners and financiers aimed at securing financing for the construction and development of the Lac à Paul project;
- Continued optimization of the Lac à Paul project including reducing cash operating production costs and capital expenses;
- Continue ongoing efforts to engage and communicate with our stakeholders and the community at large; and
- Assist the Port of Saguenay as they secure their environmental permitting from the Canadian Environmental Assessment Agency.
Arianne's Management Discussion and Analysis and Financial Statements for the three-month period ended March 31, 2016 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 97,225,755 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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*Cautionary Statements: The 50 years target is conceptual in nature, that there has been insufficient exploration to define an indicated and measured mineral resources of that size and that it is uncertain if further exploration will result in the target being delineated as an indicated and measured mineral resource. The target is based on 472 Mt in reserve and other resources on the project (released 24 October 2013) and other resources and potential targets (released May 15th, June 12th and October 14th 2014).
Cautionary Statements: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
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.
Renseignements: Source: Jean-Sébastien David, C.O.O., Tel. : 418-549-7316, [email protected]; Info: Joe Racanelli, Tel. : 416-586-1943, [email protected]; Brian Ostroff, C.E.O., Tel. : 514-908-4202, [email protected]; Medias: Karyna Tremblay, Community Relations Coordinator, Tel.: 418-549-7316, [email protected]