DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 25, 2016 /CNW Telbec/ - 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 financial results for the three- and six-month periods ended June 30, 2016. All amounts are in Canadian dollars unless noted.
"The first six months of 2016 have proven to be a very productive period for the Company," said Brian Ostroff, CEO of Arianne Phosphate. "New appointments to the board and management, the engagement of advisors and a continued dialogue with potential partners and stakeholders, have all contributed to the advancement of Arianne as we progress towards the development of our Lac a Paul Project."
Q2 2016 Financial and Operational Highlights
- The Company announced that they have engaged Endeavour Financial to act as their project finance advisor. Endeavour's role is to work with management in reviewing various financing strategies and assist in discussions with potential lenders and partners.
- The Company announced that Arianne shareholders reelected Messrs. Jean Lamarre, Dominique Bouchard, Brian Ostroff, James Cowley, David DeBiasio, Marco Gagnon, Siva Pillay and Steven Pinney as directors of the Company during the Annual General and Special Meeting of Shareholders of the Company held on June 28 in Montreal.
Highlights Subsequent to Quarter-End
- Renewal 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 2,815,500 common share purchase warrants ("Warrants") issued as part of a private placement which was closed on July 31, 2014. 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 $1.25 per common share until July 31, 2016. The Company has elected to extend the expiry date of the Warrants to July 31, 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 2016. In the second quarter ended June 30, 2016, the Company incurred respective net losses of $1.6M. This compares favourably to a net loss of $2.0M 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 June 30, 2016, the Company had $0.2M cash on hand and $0.8 million remaining undrawn on its credit facility. These funds will be allocated towards general working capital and advancing development of Lac à Paul in 2016. Based on current spending estimates for future project development, Arianne 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:
- Reduce 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 six-month periods ended June 30, 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 97,648,080 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.
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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
Image with caption: "Logo: Arianne Phosphate (CNW Group/Arianne Phosphate)". Image available at: http://photos.newswire.ca/images/download/20160825_C3368_PHOTO_EN_759917.jpg
For further information: Source: Jean-Sébastien David, C.O.O., Tel. : 418-549-7316, [email protected]; Info: Brian Ostroff, C.E.O., Tel. : 514-908-4202, [email protected]; Medias: Karyna Tremblay, Community, Relations Coordinator, Tel. : 418-549-7316, [email protected]