DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, Aug. 26, 2021 /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, reported its financial results for
the three-month and six-month period ended June 30, 2021. All amounts are in Canadian
dollars unless noted.
Financial and Operational Highlights
- 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 assumed the role
of Chief Executive Officer and joined the Board of Directors.
Brian Ostroff became President of
the Company.
- On June 4, 2021, the Company
closed an equity financing in the amount of $5,750,000 financing. Under the terms of the
financing, Arianne issued 11,500,000 units at a price of
$0.50 per unit. Each unit is
comprised of one common share and one-half warrant. Each full
warrant entitles the holder to purchase one common share at a price
of $0.71 until June 4, 2023.
- On August 10, 2021, Arianne
announced that it had engaged Lytham Partners to provide investor
relations services to the Company. The engagement of Lytham
Partners will allow Arianne to continue its outreach program that
had commenced in the first quarter of 2021.
- On August 10, 2021, the Company
announced subject to regulatory approval, the extension on the term
of 628,228 common share purchase warrants issued as part of a
private placement which closed on August 21,
2019 for gross proceeds of $691,050. Each of the warrants, which were part
of the units being issued, entitled its holder to purchase one
common share of Arianne at an exercise price of $0.75 per common share until August 21, 2021. Arianne has elected to extend
the expiry date of the Warrants to August
21, 2024. No other warrant terms are amended.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in Q2 2021. In the second quarter ended June 30, 2021, the Company incurred net losses of
$1.5 million (M) for the three-month
period and $5.9M for the six-month
period. For the same period in 2020, the net loss incurred was
$0.8M for the three-months period and
$2.6M for the six-month 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 development through financing and offtake
agreements and, is not carrying on substantial technical work, the
Company is expensing its borrowing costs until further technical
work is done on the project.
Arianne's Management Discussion and Analysis and condensed
consolidated interim financial statements for the three–month and
six-month period ended June 30, 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 185,389,469
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.
