Enters into a Memorandum of Understanding
for the supply of sulphuric acid
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 1, 2018 /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, is continuing its initial in-house review regarding the
construction of a downstream phosphoric acid facility and, in
conjunction with this review, the Company has entered into a
Memorandum of Understanding ("MoU") for the supply of sulphuric
acid.
![Logo: Arianne Phosphate Inc. (CNW Group/Arianne Phosphate Inc.) Logo: Arianne Phosphate Inc. (CNW Group/Arianne Phosphate Inc.)](https://mma.prnewswire.com/media/724325/Arianne_Phosphate_Inc__Arianne_Furthers_its_Review_of_a_Downstre.jpg)
Since first announced (see Press Release dated June 8, 2017), Arianne and potential partners
have completed a preliminary look at the opportunity of
constructing a phosphoric acid facility capable of producing
high-purity phosphoric acid for domestic and international
markets. Several potential sites have been reviewed and
further work is currently being done to try and finalize on a
potential location before doing greater work around the
opportunity, namely, getting a better understanding around the
logistics, economics and end-product specifics.
The decision on whether to move forward on this project comes
down to several factors. Arianne believes that the most
important component for a successful venture would be having access
to a steady phosphate rock supply. With roughly 85% of all
global downstream facilities vertically integrated, the ability to
source phosphate rock is key and, it is the biggest challenge to
the operations that do not have their own supply. An Arianne
facility would be well positioned as it would have access to its
own rock supply and would derive the economic benefits of vertical
integration.
Aside from phosphate rock, a phosphoric acid plant would also
require a supply of sulphuric acid that could be consistently
delivered in timely fashion. It is on this basis, that
Arianne has entered into an MoU with a large marketer of sulphuric
acid. This agreement will allow the Company to work with a
strong industry player that can provide the venture ongoing
guidance on pricing, logistics and industry supply/demand trends;
all necessary aspects in determining the project's viability.
Additionally, over the last year as Arianne has been studying
the possibility of a downstream facility, the phosphate industry
has started to improve, with demand for both phosphate rock and its
by-products, such as acid, continuing to grow.
"The cure to a low commodity price is a low commodity price,"
said Brian Ostroff, CEO of Arianne
Phosphate. "Demand for phosphate grows every single year, yet
consistently lower prices for phosphate over the last five years
affected supply growth with expansion plans curtailed and new
projects being shelved. After a prolonged period of time, a
lot of what was believed to be excess supply gets taken up and you
go from excess supply to tightness and, the price correspondingly
starts to increase, sometimes quite dramatically. Since the
beginning of the year, phosphate prices are already up by 25% and
most industry watchers believe there is more to come.
Arianne, with its world-class Lac à Paul project, should be in a
position to take advantage of the industry revival."
Arianne over the next few months will continue to move forward
its due diligence and discussions with potential partners regarding
the viability of constructing a phosphoric acid plant. With the
overall environment of the phosphoric acid industry improving,
Arianne is increasing its pace of due diligence and has an expanded
list of potential partners. It will be from these results
that the full extent of the opportunity can be assessed.
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
(Feasibility Study released in 2013) . The Company has 103,570,610
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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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.