DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, May 27, 2021 /CNW/ -
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-month and three-month
period ended March 31, 2021. All
amounts are in Canadian dollars unless noted.
"Momentum continues for the Company as we advance our Lac à Paul
project towards development," said Brian
Ostroff, President of Arianne Phosphate. "Despite a
very challenging environment over the last few years, Arianne has
been able to persevere and now finds itself in a leading position
to take advantage of the turn in the agricultural macro.
Today our project sits as a 'best of class' and, with both grain
and phosphate prices at multi-year highs, it has allowed
conversations with potential financiers and partners to accelerate
with an eye towards unlocking the incredible value of Lac à
Paul."
Financial and Operational Highlights
- In March 2021, the Company
announced the restructuring of its current credit facility and
loans. For the credit facility, the Lender has exercised 26,780,000
warrants into the Company's common shares, thereby reducing the
amount owing under the credit facility from $31,496,897 to $24,892,949, a reduction of $6,603,948. The credit facility was also extended
for a period of 5 years with the annual interest rate reduced of
8%. The annual interest can be paid by the Company, at its sole
option, either in cash or in common shares of the Company. In
conjunction with the extension of the credit facility, the Company
issued 32,000,000 warrants at an exercise price of $0.33 per share for a period of 5 years, with
these warrants subject to a warrant-blocker. The Company increased
the buyback purchase price of the existing production fee granted
in favour of the Lender to $11.25M.
- Arianne also announced the conversion of its existing loans and
working capital facility. The holders of $5,970,155 of these facilities had their debt
converted into common shares of the Company at a price of
$0.275 per share. As a result of the
debt conversion, the Company issued a total of 21,709,655 common
shares to the debt holders. The Company also cancelled 11,028,584
warrants that were originally issued with the loans and working
capital facility.
- In April 2021, the Company
announced that it had reached an agreement in principle with the
Port of Saguenay regarding the future site of a maritime loading
facility on the north shore of the Saguenay River. This Agreement
will allow for both the Company and the Port to finalize details
surrounding the costs, construction and operations of the facility
from which, Arianne will be shipping its phosphate concentrate
globally. The final agreement will cover the use of the facility
for an initial period of 30 years, thereafter renewable twice for
periods of 10 years.
- In April 2021, Arianne partnered
with the Quebec Center of Geomatics (CGQ), to advance research and
development on a new method for the design and future monitoring of
the Company's tailings operations. This work will use geomatic and
remote sensing tools combined with artificial intelligence that
should greatly improve the safety aspects of Arianne's
operations.
- In May 2021, Arianne announced
that Jeffrey Beck will assume the
role of Chief Executive Officer and also joined the Board of
Directors. Brian Ostroff is becoming
President of the Company.
- During the first quarter of 2021, the Company appointed Red
Cloud Financial Services and GRA Enterprises to support the work
with our investors relations in regard of the quick turn out of the
market during the first months of 2021.
- On May 13, Arianne entered into
an agreement with a syndicate of underwriters by which the Company
will raise $5 Million by issuing 10
Million units of the Company by way of a bought deal private
placement. The units were priced at 50
cents per unit and consist of one common share and one-half
common share purchase warrant good for a period of 24 months at an
exercise price of 71 cents.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q1 2021. In the first quarter ended March 31, 2021, the Company incurred net losses
of $4.4 million (M) for the
three-month period. For the same period in 2020, the net loss
incurred was $1.8M for the
three-months period. The higher losses are explained by borrowing
costs that were previously capitalized. Since the Company is
currently in a period of raising funding for its project through
financing and offtake agreements and is not carrying substantial
technical work, the Company has suspended the capitalization of its
borrowing costs until further technical work is done on the
project. In the first quarter 2021, the Company restructured its
debt which created a higher noncash finance cost. These costs are
noncash.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three–month
period ended March 31, 2021 are
available on the Company's website and on SEDAR at
www.sedar.com.
Qualified Person
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
(Feasibility Study released in 2013). The Company has 173,389,469
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:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
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.