DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, March 30, 2022 /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 pleased to report its financial results for both the
three and twelve-month periods ended December 31, 2021. All amounts are in Canadian
dollars unless noted.
Post 2021 Highlights
- In February 2022, Arianne
announced that it has initiated a research program in collaboration
with the Environmental and Biotechnology Research Group of the
Riviere-de-Loup Cegep aimed at the development of a new breed of
fertilizers using organic waste and Arianne's high-purity,
low-contaminant phosphate concentrate.
2021 Highlights
- In December 2021, Arianne
announced that it was working with the University of Quebec in Trois-Rivières ("UQTR") to assess
the use of Arianne's high-purity phosphate concentrate in
electrolysers that produce hydrogen for use in hydrogen fuel cells.
UQTR's work is focusing on designs around the proton exchange
membrane ("PEM").
- In November 2021, the Company
announced that following preliminary test work, conducted in
collaboration with several battery industry participants, the
Company was sending out its high-purity phosphate concentrate for a
more detailed analysis. This next stage of testing has been
designed to meet specifications provided by a major battery
producer by way of MoU and, through an independent facility that is
a producer of purified phosphoric acid.
- On June 4th 2021, the
Company closed an equity financing in the amount of $5,750,000. Under the terms of the financing,
Arianne has 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.
- In April 2021, the Company
announced that it had reached an agreement in principle with the
Port of Saguenay regarding the future 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 operation 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 storage facility. 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 March 2021, the Company
announced the restructuring of its credit line and loans. For the
credit line, the Lender has exercised 26,780,000 warrants into the
Company's common shares, thereby reducing the credit facility from
$31,496,897 to $24,892,949, a reduction of $6,603,948. The credit facility was extended for
a period of 5 years at an annual interest rate 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. The Company issued
32,000,000 warrants at an exercise price of $0.33 per share for a period of 5 years. The
Lender shall not be entitled to exercise warrants which would
result in the Lender holding, following such exercise, on a
partially diluted basis, more than 19.9% of the issued and
outstanding common shares of the Company, except under limited
circumstances. The Company will increase the buyback purchase price
of the existing production fee granted in favor of the Lender to
$11.25M.
- Arianne converted 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 had issued a
total of 21,709,655 common shares to such debt holders. The Company
also canceled 11,028,584 warrants that were originally issued with
the loans and working capital facility.
Financial Summary
Arianne is a development-stage
company and, as such, did not generate revenue or positive cash
flow in 2021. In the fourth quarter and full-year period ended
December 31, 2021, the Company
incurred respective net losses of $1.7 and $8.3M,
compared to $1.6M and $5.9M in the comparable periods in 2020. The
higher losses are mainly explained by higher noncash borrowing
costs. 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.
Outlook
In 2022, Arianne will be focused on the
ongoing advancement and development of its Lac à Paul project.
Expected milestones include:
- Advance its partnership and financing arrangements;
- Continue to enhance the value of the project through project
optimization;
- Continue our ongoing dialogue with Stakeholders.
Arianne's Management Discussion and Analysis and Financial
Statements for the three- and twelve-month period ended
December 31, 2021, are available on
the Company's website and on SEDAR at www.sedar.com.
Qualified Person
Raphael Gaudreault, eng., Qualified Person by NI
43-101, has approved this release. Mr. Gaudreault 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 185,475,310
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 be 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 approval, 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.
