Arianne Phosphate Reports First Quarter 2021 Financial and Corporate Results
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (United States)
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 Of Quebec The Saguenay-Lac-Saint-Jean region has published its financial results for the three-month and three-month periods ended March 31, 2021. All amounts are in Canadian dollars, unless otherwise indicated.
“The momentum continues for the Company as we move our Lac à Paul project towards development,” said Brian Ostroff, President of Arianne Phosphate. “Despite a very difficult environment in recent years, Arianne has persevered and is now in a leadership position to take advantage of the shift in macro agriculture. Today, our project stands as a “best of class” and, with prices for cereals and phosphates at their highest for several years, it has helped speed up conversations with potential financiers and partners. to unleash 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 exercised 26,780,000 warrants on the common shares of the company, thereby reducing the amount owed under the credit facility by $ 31,496,897 at $ 24,892,949, a reduction of $ 6,603,948. The credit facility has also been extended for a period of 5 years with a reduced annual interest rate of 8%. Annual interest may be paid by the Company, at its sole discretion, either in cash or in common shares of the Company. Along 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, these warrants being blocked. The Company increased the repurchase purchase price of existing production costs granted in favor of the lender to $ 11.25M.
Arianne also announced the conversion of its existing loans and working capital facility. Holders of $ 5,970,155 of these facilities saw their debt converted into common shares of the company at a price of $ 0.275 per share. Following the debt conversion, the company issued a total of 21,709,655 common shares to the debt holders. The company also canceled 11,028,584 warrants originally issued with the loans and the working capital facility.
In April 2021, the company announced that it had reached an agreement in principle with the Port of Saguenay concerning the future site of a marine loading facility on the north shore of the Saguenay River. This agreement will allow the company and the port to finalize details regarding the costs, construction and operation of the facility from which Arianne will ship its phosphate concentrate worldwide. The final agreement will cover the use of the facility for an initial period of 30 years, then renewable twice for periods of 10 years.
In April 2021, Arianne has partnered with the Center de géomatique du Québec (CGQ) to advance research and development on a new method for the design and future monitoring of the company’s tailings management activities. This work will use remote sensing and geomatics tools associated with artificial intelligence, which should greatly improve the safety aspects of Arianne’s operations.
In May 2021, Arianne announced that Jeffrey Beck will assume the role of Managing Director and will also join the Board of Directors. Brian Ostroff becomes president of the company.
During the first quarter of 2021, the Company mandated Red Cloud Financial Services and GRA Enterprises to support work with our investor relations regarding the rapid market turnover in the first months of 2021.
At May 13, Arianne has entered into an agreement with a syndicate of underwriters whereby the company will increase $ 5 million by issuing 10 million units of the Company under 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 valid for a period of 24 months at an exercise price of 71 cents.
Arianne is a development stage company and as such did not generate positive revenue or cash flow in the first quarter of 2021. As of the first quarter ended March 31, 2021, the company suffered 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-month period. The higher losses are explained by borrowing costs that were previously capitalized. As the company is currently in the fundraising period for its project through financing and drawdown agreements and is not carrying out any significant technical work, the company has suspended the capitalization of its construction costs. borrowing until further technical work is done on the project. In the first quarter of 2021, the company restructured its debt, which created a higher non-cash finance cost. These charges are not in cash.
Arianne’s management report 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.
Jean-Sébastien David, P.Geo., NI 43-101 Qualified Person, has approved this version. Mr. David is also the chief operating officer of the company.
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 Saint-Jean region in Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants (feasibility study published in 2013). The Company has 173,389,469 shares outstanding.
Neither the 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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Cautions Regarding Forward-Looking Information
This press release contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities regulations in Canada and United States (collectively, “forward-looking information”). Forward-looking information includes, but is not limited to, the anticipated quality and production of 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 “forecast”, “forecast”, “is planned”, “budget”, “planned”, “estimates”, forecast “,” a intention “.,” anticipates “or” believes “, or the negative aspects thereof or variations of such words and expressions or statements that certain actions, events or results” may “,” could “,” would ” , “could” or “will” be made, occur or be achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of the Company are materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile share prices; risks associated with changes in commodity prices ; sources and costs of electrical installations ics; estimating initial and sustaining capital requirements; estimating labor and operating costs; general world markets and economic conditions; the risk associated with the exploration, development and exploitation of mineral deposits; estimation of mineral reserves and resources; risks associated with uninsurable risks arising during exploration, development and production; risks associated with currency fluctuations; environmental risks; competition to recruit experienced staff; access to adequate infrastructure to support mining, processing, development and exploration activities; risks associated with changes in the mining regulatory regime governing the Company; completion of the environmental assessment process; risks associated with regulatory and authorization delays; risks associated with potential conflicts of interest; dependence on key personnel; financing, capitalization and liquidity risks, including the risk that the financing necessary to finance the continuation of exploration and development activities of the Lac à Paul project will not be available on satisfactory terms, or not all; the risk of potential dilution through the issuance of ordinary shares; the risk of litigation. Forward-looking information is based on what management believes are reasonable at the time such statements are made, including, but not limited to, ongoing exploration activities, no material adverse changes in commodity prices, exploration and development plans proceeding according to plans, etc. the plans achieve the stated expected results, obtain the required regulatory approvals and the other assumptions and factors set forth herein. Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as expected. , estimated or planned. 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 provided 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.
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