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Arianne Phosphate Reports 2015 Second Quarter Financial Results

Arianne Phosphate (TSXV:DAN) announced its financial results for the three and six month period ended June 30. The company also provided outlook for the remainder of 2015.

As quoted in the press release:

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q2 2015. In the second quarter ended June 30, 2015, the Company incurred a net loss of $2,029,395 for the six-month period ended June 30, 2015. This compares favourably to a net loss of $3,045,451 in the comparable period of 2014.  The year-over-year decline in net loss was due to a series of measures that the Company undertook in order to reduce its expenses, as well as to focus primarily on permitting activities and financing alternatives, which require less working capital. The Company’s net loss and cash burn are consistent with other development stage mining companies.

Highlights:

  • Continued its efforts to secure permitting for its Lac à Paul project.  The Company worked closely with the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC), Bureau d’Audiences Publiques sur l’Environnment (BAPE) and local stakeholders, providing information, hosting public hearings and responding to inquiries about Lac à Paul’s economics and project viability.  Arianne anticipates receiving an operating permit in the last quarter of 2015.
  • Signed a cooperation agreement with Innu First Nations from Pessamit, Essipit and Mashteuiatsh in support of Lac à Paul’s development.  Arianne and the three Innu First Nations are currently collaborating on the specifics to be included in the Impact and Benefit Agreements.
  • Reduced expected production costs (OPEX) for its premium quality phosphate concentrate by US$8 per ton to approximatelyUS$79 per ton freight on board (FOB) Port of Saguenay.
  • Appointed James Cowley as interim Chief Financial Officer for the Company.  Mr. Cowley, a metallurgical engineer with an MBA in Finance, is a director of the Company and a member of its audit Committee.  Mr. Cowley had previously served as President of Arianne from August of 2011 until August of 2014.
  • Shareholders re-elected Messrs. Pierre Fitzgibbon, Dominique Bouchard, James Cowley, David DeBiasio, Marco Gagnon, Brian Ostroff, Siva Pillay, and Steven Pinney as Directors of the Company’s Board.

Jean-Sébastien David, COO of Arianne Phosphate, commented:

The second quarter was yet again another exciting and productive quarter for Arianne. Although many segments of the resource sector were adversely affected by sharply lower commodity prices, the fertilizer sector provided some relative stability and Arianne was able to make significant progress towards its key milestones. Arianne continued to work closely with government officials and agencies, as well as local stakeholders, to complete the formal public hearing process aimed at securing permitting for Lac à Paul. Our work with local stakeholders also led to the signing of a collaboration agreement with the three Innu First Nations. Operationally, our ongoing efforts to reduce our project’s expected operating costs, led to an additional 10% savings, or an anticipated cost of US$79 per ton. Combined, these initiatives demonstrate both our commitment to advancing development of Lac à Paul, as well as to the overwhelming support we have received for the Project’s build-out.  With permitting for our project expected relatively soon, we are very well positioned to capitalize on the growing demand for a secure and stable phosphate supply.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.

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Arianne Phosphate Reports New Reduction in Production Cost of its Phosphate Concentrate

Arianne Phosphate (TSXV:DAN) announced that it has reduced the production cost of its high-purity phosphate concentrate by an additional $8 per tonne, reducing the company’s operating expense.

As quoted in the press release:

According to the Company’s Feasibility Study (“FS”) filed in October 2013, Arianne initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate.  Following the release of the Feasibility Study, the Company has launched numerous initiatives to improve the project economics with much of that effort targeted at reducing its operating costs.  To date, the Company has announced an optimized mining plan to include additional resources it had proved up, as well as savings associated with a more streamlined metallurgical process.  This subsequent reduction is a continuation of the Company’s efforts to move the Lac à Paul project even lower on the cost curve.

Jean-Sebastien David, COO of Arianne, commented:

Our latest success in reducing our anticipated production costs is very encouraging and, when looked at through its entire process, represents a considerable savings over the projected life of mine. From the day we released our Feasibility Study, we have set out to advance development of Lac à Paul.  In less than two years, we have expanded our resource, simplified our process to make a high-purity phosphate concentrate, concluded a power deal with Hydro-Québec and received an investment from the Government of Quebec.  Once the project proceeds to production, our most recent studies support a production cost of approximately $80 per tonne of concentrate.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.


Arianne Phosphate Signs Cooperation Agreement with the Three Innu First Nations

Arianne Phosphate (TSXV:DAN) announced that it has signed a cooperative agreement with the First Nations Innu from Pessamit, Essipit and Mashteuiatsh for its Lac à Paul project in Quebec.

As quoted in the press release:

With the signature of the Collaboration Agreement complete, the parties are looking in the following months to finalize the specifics to be included in the Impact and Benefit Agreements (IBAs).

Going forward, Arianne will continue to advance its Lac a Paul project.  The Company continues to look at initiatives to optimize its mining plan and further reduce costs associated with the production of its high purity phosphate concentrate.  The Company also is continuing its dialogue with the BAPE and the Government in order to receive its Ministerial Decree to build and operate its Lac a Paul Mine.

Pierre Fitzgibbon, chairman of Arianne Phosphate, commented:

We appreciate the interest expressed by the First Nations towards our phosphate project and the willingness to see Lac à Paul progress.  This agreement better positions Arianne to grow, for the betterment of all of our stakeholders including those in the Innu communities.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.

 


Arianne Phosphate Releases Q1 2015 Financial Results

Arianne Phosphate Inc. (TSXV:DAN) announced its financial results for the first quarter of 2015. It’s a development-stage company and thus did not generate revenue or positive cashflow; instead, it incurred a net loss of $891,200. That’s down from $1,405,963 during the year-ago period.

Other financial and operational highlights include:

  • The Company announced a reduction of its operational estimated production cost of US$4.26 per ton representing a cost savings of almost 5% from the original Feasibility Study (FS). This should result in annual savings of approximatelyUS$12.75 million, or close to US$330 million over the planned 26-year mine life. According to Arianne’s FS filed in October 2013, the Company initially projected an FOB Port of Saguenay cost of US$93.70 per ton for its premium quality 39% P2O5 concentrate.
  • Through exploration activities completed in 2014, Arianne has identified new measured and indicated resources on the Paul Eastern Extension. Arianne’s updated resource estimate now shows a 5% increase in measured and indicated resources (702.7 million tonnes vs. 668.7 million tonnes) over its previously announced resources released on October 14, 2014.
  • The Company announced that it has successfully completed a customer trial program that produced a phosphate concentrate with a superior grade and lower contaminants than previously ever achieved by the company. The customer trial produced 1.2 tonnes of phosphate concentrate with a grade of 40.0% of P205 and 0.03% of contaminants. The results surpass previous metallurgical test work that had produced a P205 concentrate of 38.8% with 0.089% of contaminants.
  • The first public information meeting regarding the BAPE was held on February 18, 2015 in the city of Saguenay. This is an essential and vital process in order for the Company to secure its operating permit. The Bureau is a neutral and independent organization that reports to the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC or Minister), Government of Québec. The role of the BAPE is to make enquiries and to consult the public in order to provide informed input that will assist in government decision making with a sustainable development perspective.

Click here to read the full Arianne Phosphate Inc. (TSXV:DAN) press release.

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. The Company has 95,325,755 million shares outstanding


Arianne Phosphate Provides Update on Permitting Process for Lac-à-Paul Project, Public Hearing Scheduled

Arianne Phosphate (TSXV:DAN) announced that the public hearings, which are the second phase of the permitting process, on the company’s Lac-à-Paul phosphate project are scheduled to begin on April 27 in Saguenay, Quebec.

As quoted in the press release:

In a letter addressed to Mr. David, Quebec’s Minister of Sustainable Development, Environment and the Fight Against Climate Change, David Heurtel, indicated that the public hearing process will consist of two parts.  In the first part, individuals and interested groups will be able to ask questions about the project and information filed by the Company.  In the second, the BAPE commission will hear opinions and suggestions from individuals and groups in the form of an oral presentation or a brief. At the end of the public hearing the BAPE will submit its report which will contain its findings as well as the analysis to the Minister.

Jean-Sebastien David, COO of Arianne Phosphate, commented:

We have been anticipating the public hearing process for some time and are extremely pleased to be able to proceed on this very significant milestone. We have significantly advanced the project since we filed the impact study in October 2013.  Our project has extremely robust economics and will produce one of the highest quality, low contaminant phosphate concentrates in the world.   Successful completion of the permitting process is a key priority for us in 2015.  We very much look forward to presenting our project to the BAPE, a project which we believe is poised to become a major producer of phosphate concentrate.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.


Arianne Phosphate Reports 2014 Annual and Fourth Quarter Results

Arianne Phosphate (TSXV:DAN) announced its fourth quarter and year end financial and operational results for 2014. The company also provided an outlook on its plans for 2015.

Financial and operational highlights for 2014:

  • Optimized its operating production process that will result in costs savings of US$3.91 per tonne of phos-rock concentrate or approximately US$280 million over Lac à Paul’s expected 26-year life of mine due to the elimination of two reagents;
  • Strengthened its leadership team through the appointment of Pierre Fitzgibbon, as Executive Chairman of the Board of Directors, Dominique Bouchard asVice-Chairman of the Board of Directors, Jean-Sebastien David as Chief Operating Officer and Dino Fuoco as Chief Financial Officer;
  • Announced the closing of an $8 million private placement financing that included a $2 million investment from the Québec Government through Ressources Québec, a subsidiary of Investissement-Québec;
  •  Increased its resources at the measured and indicated categories by 13 percent to 688 million tonnes at a grade of 7.01 percent at the Paul Zone of the Lac à Paul project; and
  • Determined the location of the deep-water port on the Saguenay River that will be used for the shipment of its phosphate concentrate to clients.

Outlook for 2015:

In 2015, Arianne will be focused on the ongoing advancement of its Lac à Paul Project. Expected milestones in 2015 include:

  •  Additional optimization of operating and capital expenses;
  •  Signing “agreements in principle” with First Nations to proceed with development of the Lac à Paul Project;
  •  Securing environmental  permitting from appropriate government agencies; and
  •  Securing strategic partners and financing

Jean-Sebastien David, CEO of Arianne Phosphate, commented:

Arianne has developed considerable momentum over the past 12 months. Most significantly, we strengthened the economics of our Lac à Paul project,  attracted the Quebec government as a strategic investor and  started the permitting process that, upon successful completion, will serve as a major catalyst for our company.  Combined, these developments further underscore the value of Lac à Paul and its potential to provide customers in the food and agriculture sectors with surety of supply.

Click here to read the full Arianne Phosphate (TSXV:DAN) press release.


Arianne Produces Superior Phosphate Concentrate During Trial

Arianne Phosphate Inc. (TSXV:DAN) announced that the phosphate concentrate it produced during a recent customer trial program has “a superior grade and lower contaminants” compared to the product it has previously produced.

As quoted in the press release:

Conducted by Corem, an engineering firm specializing in providing a wide range of mineral processing and analytical services to mining companies, the customer trial produced 1.2 tonnes of phosphate concentrate with a grade of 40.0% of P205 and 0.03% of contaminants. These tests were completed by adding an additional step beyond Arianne’s already optimized metallurgical process. The results surpass previous metallurgical test work that had produced a P205 concentrate of 38.8% with 0.089% of contaminants.

Jean-Sebastien David, COO of Arianne, commented:

The results of the customer trial are extremely encouraging and underscore the progress that we continue to make at our Lac à Paul project. Of particular note, the customer trial produced a concentrate with a further reduced presence of aluminum, iron and magnesium in addition to the nearly non-existent levels of some extremely deleterious elements such as uranium and cadmium. We expect that these excellent results will allow us to produce a phosphate concentrate that exceeds the standards needed for commercial applications of our product. Just as important, our latest results confirm our belief that our concentrate will be priced at a premium.

Click here to read the full Arianne Phosphate Inc. (TSXV:DAN) press release.


Arianne Updates Mineral Resource Estimate for Paul Zone

Arianne Updates Mineral Resource Estimate for Paul Zone

Arianne Phosphate (TSXV:DAN,OTCBB:DRRSF) has been working to advance its Lac a Paul project in the Saguenay-Lac-St-Jean region of Quebec since global demand for fertilizer increased in 2008. 

Most recently, the company released an updated NI 43-101 mineral resource estimate for the Paul Zone at its Lac a Paul project. It comes to 702.7 million tonnes at 7.16 percent P2O5 with a 4 percent P2O5 cut-off grade in the measured and indicated category.

The Paul Zone is made up of the Paul Eastern Extension and the Paul Western Extension. The former has a measured and indicated resource of 12.5 million tonnes at 6.31 percent P2O5 with a 4 percent P2O5cut-off grade, while the latter’s sits at 690.2 million tonnes at 7.18 percent P2O5 with a 4 percent P2O5 cut-off grade.

Image courtesy of Arianne Phosphate.

The report, released on Wednesday, also states that recent drilling indicates that the Mini-Paul Zone and the Naja Zone “show strong potential for phosphate occurrence.” Mini-Paul is located less than 300 meters south of the Paul Zone and is connected to a magnetic anomaly that is about 700 meters long and 60 meters wide. For its part, Naja is located southeast of the Paul Zone.

Future focus and goals

No word yet on what specifically the company’s next steps will be, but Jean-Sebastien David, COO of Arianne, does state in the release that the expansion of the Paul Zone shows that the company is making progress towards one of its goals, which is to “show a 50 year life of mine.” He also notes, ”[r]esults of our work clearly demonstrate the potential to extend the life of our project beyond our most optimistic estimates.”

Arianne’s share price closed Wednesday flat at $0.80.

 

Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article. 


Arianne Phosphate Releases New Resource Estimate for Paul Zone

Arianne Phosphate (TSXV:DAN) has released an updated resource estimate for the Paul zone at its Lac à Paul phosphate project in Quebec. The new estimate totals 702.7 million tonnes at 7.16 percent P2O5 with a 4.0 percent P2O5 cut-off grade for measured and indicated resources.

As quoted in the press release:

Through further exploration activities completed last fall, Arianne has identified new measured and indicated resources on Paul Eastern Extension of 12.5 million tonnes at 6.31% P2O5 with a 4.0% P2O5 cut-off grade. (1) Additionally, an updated resource estimate from the remodeling on Paul Zone and its Western Extension now amount to 690.2 million tonnes at 7.18% P2O5 with a 4.0% P2O5 cut-off grade in the measured & indicated category. In total, Arianne’s updated resource estimate now shows a 5% increase in measured and indicated resources (702.7 Mt vs 668.7 Mt) over its previously announced resources released on October 14th of 2014.

Arianne COO, Jean-Sebastien David, said:

The work that we have done, and results that we have received, continue to expand what is already one of the world’s largest Greenfield phosphate rock projects. One of the goals we had looked to accomplish for the Company was the ability to show a 50 year life of mine and, as drilling has expanded the Paul Zone to the west and now to the east, we certainly continue to advance towards that goal.

Click here to read the Arianne Phosphate (TSXV:DAN) press release


Arianne Phosphate Identifies Significant Cost Savings at Lac à Paul

Arianne Phosphate Inc. (TSXV:DAN) announced that it has identified cost savings of US$4.26 per ton for phosphate concentrate production at its Lac à Paul project in Quebec.

As quoted in the press release:

According to Arianne’s Feasibility Study (‘FS’) filed in October 2013, the Company initially projected an FOB Port of Saguenay cost of US$93.60 per ton for its premium quality 39% P2O5 concentrate. The reduction of US$4.26 per ton represents a cost savings of almost 5% and, according to the Company’s FS, should result in annual savings of roughly US$12.75 million, or close to US$330 million over the planned 26 year life of mine.

Jean-Sébastien David, COO of Arianne Phosphate, stated:

This significant reduction in our mining costs strengthens the economics of our project and moves us even lower on the cost-curve, improving our competitive advantage. Lac-à-Paul is the world’s largest greenfield phosphate rock project and will produce one of the highest purity concentrates commercially available. These cost improvements will save hundreds of millions of dollars over the life of mine, and make our project even more attractive.

Click here for the full Arianne Phosphate (TSXV:DAN) press release


Arianne Phosphate to Start Permitting Phase for Lac a Paul

Arianne Phosphate Inc. (TSXV:DAN) announced that on February 18, 2015 it will begin the public information and consultation process required for it to receive environmental permitting for its Lac a Paul project.

As quoted in the press release:

Development of Arianne’s Lac-à-Paul project is expected to generate a $1.2 billion investment, create more than 2,200 direct and in-direct jobs during the construction phase and create approximately 1,000 jobs during a 25 year life of mine operation for the Saguenay region.  The project will pioneer a new industry in the province while generating roughly $1 billion in employment income as well as more than $12.6 billion in overall economic benefit for the province of Quebec.

Jean-Sebastien David, COO at Arianne, commented:

Securing permitting for our Lac-à-Paul phosphate project represents another major milestone for our Company. We very much look forward to the start of the public consultation process and showing the reasons why Lac-à-Paul is a world-class project that will provide significant economic benefits to the Saguenay region with little environmental impact.

Click here to read the full Arianne Phosphate Inc. (TSXV:DAN) press release.


Arianne Phosphate Releases Third Quarter Results, Sees Addition of Inferred Resources

Arianne Phosphate (TSXV:DAN,OTCBB:DRRSF) released its third quarter results on Thursday, highlighting the addition of 146 million tons of inferred resource at 5.3 percent potash in the TraMan Zone and 17 million tons at 5.98 percent potash in the Traverse Zone. The company closed a tranche of an $8 million private placement but also announced a loss of $1.26 million as it is still a development stage company.

According to the press release, third quarter highlights include:

Announced drilling results from TraMan and Traverse Zones:

  • Addition of 146Mt of inferred resource at 5.30% P2O5 at the TraMan Zone
  • Addition of 17Mt at 5.98% P2O5 at the Traverse Zone

Announced the closing of the first tranche of an $8 million private placement; the second tranche having been completed in October, led by an investment from the Quebec government, representing 25% of the total

Strategic changes to the management :

  • Mr. Pierre Fitzgibbon, is the Executive Chairman of the Board of Arianne
  • Mr. Dominique Bouchard, is the Vice-Chairman of the Board of Arianne
  • Mr. Jean-Sébastien David is COO of the Company
  • Mr. Dino Fuoco is the Chief Financial Officer

Jean-Sébastien David, COO of the Company, said:

We are pleased with Arianne’s progress during the third quarter. The Company continues to move towards its stated milestones of permitting, an agreement with the First Nations, project optimization and discussions with interested parties on a strategic relationship. Arianne had a busy quarter as progress was made on many of these fronts and we look forward to continued success in the coming quarter.

Click here to read the Arianne Phosphate (TSXV:DAN,OTCBB:DRRSF) press release
Click here to see the Arianne Phosphate (TSXV:DAN,OTCBB:DRRSF) profile.


Arianne Phosphate Announces Daniel Gaudreault as Chairman of Monitoring Committee

 Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) announced that Daniel Gaudreault had been nominated to become the chairman of the company’s monitoring committee. Gaudreault is well known in the regional community which the company believes will help them establish a good relationship.

According to the press release:

Recently retired, Mr. Gaudreault led a career within the municipality of Saint-Fulgence also within the town of Jonquière and Saguenay during which he notably served as General Director of these municipalities. Throughout his career, he has also been a Board member of several organizations.

Jean-Sebastien David, the chief operating officer, said:

We are delighted with Mr. Gaudreault’s nomination. I’m convinced that his experience will help the growth and development of the project while taking into account the community’s concerns.

Click here to read the Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) press release
Click here to see the Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) profile.


Arianne Phosphate Closes Second Tranche of $8M Financing

Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) closed the second tranche of its previously announced $8M private placement financing for gross proceeds of $2,369,000.

As quoted in the press release:

As previously announced by the Company, the Quebec government is participating, investing $2,000,000 through Ressources Québec, a subsidiary of Investissement Québec (see our press release dated September 15, 2014 for more details). On July 31, 2014, the Company closed a first tranche of the Offering for gross proceeds of $5,631,000(see our press release dated July 31, 2014 for more details).

Click here to read the Arianne Phosphate (TSXV:DAN) press release
Click here to see the Arianne Phosphate (TSXV:DAN) profile.


Arianne Phosphate: 13% Increase in Measured and Indicated Resources on the Paul Zone

Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) announced an updated resource estimate on its Paul Zone: 668 million tonnes at 7.01% P2O5 with a 4.0% P2O5 cut-off grade in the measured & indicated category; and a new inferred resource of 38 million tonnes at 6.13% P2O5 at 4.0% P2O5 cut-off grade.

As quoted in the press release:

The Paul Zone is the main zone of the Phosphate Lac à Paul Project. According to the Company’s Feasibility Study (released October 24, 2013), the Paul deposit alone currently has proven and probable reserves of 472 million tonnes of ore at 6.90% P2O5 (cut-off grade of 3.5% P2O5) and is projected to have a mine life of roughly 26 years. The mineral resource estimate (released March 7, 2013) which was used to establish these reserves reported 590 Mt of measured and indicated resources at 7.13% P2O5 with a cut-off grade of 4% P2O5.

Click here to read the Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) press release
Click here to see the Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) profile.


Quebec’s Plan Nord Helps Arianne Phosphate

The Financial Post reports that the province of Quebec is taking a $50-million interest in a new subsidiary of Gaz Metro that markets liquefied natural gas. This investment underlines the conviction with which the Liberal government of Premier Philippe Couillard has restarted the Plan Nord, an economic development strategy focused on natural resource extraction north of the 49th parallel. Premier Couillard hopes to woo investors by building transportation and energy infrastructure in the territory. The province is also setting aside $1-billion in a special fund for interests in natural resource companies operating on its territory, and invested $2-million in Arianne Phosphate (TSXV:DAN,FWB,JE9N,OTCBB:DRRSF).

Click here for the full article.


Quebec Government Supports Arianne Phosphate, Invests $2 Million

Quebec Government Supports Arianne Phosphate, Invests $2 MillionCanada’s phosphate production hopeful received a tidal wave of support from the Quebec government. On Monday, the province’s premier, Phillippe Couillard, announced a $2-million investment into Arianne’s Lac à Paul project, located 200 kilometers north of Saguenay. The investment, which is being made by Investissement Quebec, is part of the $8-million financing the company announced at the end of July.

The $1.2-billion Lac à Paul phosphate project has an indicated mineral reserve of 500 million tonnes of high-grade phosphate. With an annual capacity of 3 million tonnes and a mine life of 25 years, the project fits into Quebec’s Plan Nord program with the expectation that it will create some 2,200 construction jobs and 1,000 direct and indirect jobs.

Through its investment in the project, the Quebec government hopes to demonstrate its commitment to Lac à Paul‘s economic potential, as well as send a clear signal for other entrepreneurs to also take part. At a press conference on the subject, Couillard noted that beyond the $2 million invested, the government wants to stand by the company in an attempt to boost market confidence.

Indeed, as Pierre Fitzgibbon, chairman of Arianne, noted in the company’s press release earlier on Monday, Lac à Paul “is a world class project with enormous benefits to all involved. By making this investment, the Government of Quebec is helping to pave the way forward for this important project. This concrete show of support will allow the strengthening of the region’s economy, pioneer a new long lasting industry for Quebec and, of course, provides the province the economic benefit of being a shareholder in this $1.9B [NPV] asset. The jobs and benefits to the community are that much closer.”

Likewise, Jean-Sebastien David, Arianne’s COO, commented, “[c]ertainly, this is a big project and it will require the support of all those involved. By having the government there, I think it shows the commitment of the province to doing all they can do to help see Lac à Paul be developed. Their investment will enable our team to continue to focus their efforts and energy on the ultimate success of our project. This investment also adds to the string of recent favorable corporate events over the last few months: positive drill results, favorable cost reductions and strong management additions.”

Lac à Paul is set to be the most significant development in Quebec. As Arianne reported in its feasibility study early this year, it will generate $12.5 billion in economic benefits throughout its 25 years of operations. Arianne is planning to reach production by 2017 to 2018. Arianne’s production timeline puts the company in a better position to take advantage of an improved market. As it stands, analysts are currently calling for declining prices and crops, which could reduce growth in the fertilizer sector for the next year.

Coincidentally, Arianne’s announcement was released alongside news out of top phosphate-producing country Morocco, which announced a drop in profits for the first half of the year. Prices for phosphate rock have slumped so far in 2014, and are currently sitting at $110 per tonne. In contrast, 2013 saw phosphate prices around $145 per tonne and in 2012 they were at $185.

According to Reuters, Morocco’s Office Cherifien de Phosphate (OCP) has exclusive access to the largest global reserves of phosphate. With North America projected to double its required phosphate imports to 8 million tonnes in the next five years, domestic supply could offer some shelter from the Middle Eastern and Northern African suppliers, which control the bulk of the phosphate market.

Arianne issued a trade halt on Monday and did not resume trade following the news.

 

Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned. 


Quebec Government Invests $2 Million in Arianne Phosphate’s Lac à Paul Project

Arianne Phosphate (TSXV:DAN,FWB,JE9N,OTCBB:DRRSF) announced that, as part of its $8 million financing financing that was previously announced on July 31 2014, Investissement Québec has invested $2 million in Arianne’s Lac à Paul Phosphate Project. The investment is expected to close in coming days.

As quoted in the press release:

Arianne’s Lac à Paul project is set to be the most significant development in the province. Already shown to be the largest greenfield phosphate project in the world, independent studies anticipate that Lac à Paul will provide over $12.5B in economic benefit to the region during the first 25 years of operation. The project will create over 2,200 jobs during the construction phase, 1,000 direct and indirect jobs during operation and provide $1B in employment income to the region over this period.

Arianne COO, Jean-Sebastien David, said:

We are very pleased that the government has chosen to support this project and believe that they will be an exceptional partner as we go forward through permitting and ultimately development. Certainly, this is a big project and it will require the support of all those involved. By having the government there, I think it shows the commitment of the province to doing all they can do to help see Lac à Paul be developed. Their investment will enable our team to continue to focus their efforts and energy on the ultimate success of our project. This investment also adds to the string of recent favorable corporate events over the last few months: positive drill results, favorable cost reductions and strong management additions.

Click here to read the Arianne Phosphate (TSXV:DAN) press release
Click here to see the Arianne Phosphate (TSXV:DAN) profile.


Arianne Phosphate Reports Management Changes, Q2 Financial and Corporate Results

Arianne Phosphate (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) reports that Brian Kenny will no longer serve as CEO of Arianne, and will stay on as a consultant in order to better advance the company towards its primary milestones including permitting and securing a strategic partner. The company reports that many of Mr. Kenny’s responsibilities will now fall to COO Jean-Sebastien David, while Pierre Fitzgibbon will become Executive Chairman of Arianne to support this expanded role.

As quoted in the press release:

As a result of Mr. Kenny’s primary focus, the belief was that the CEO title was no longer applicable and Mr. Kenny has thus chosen to resign the title. Mr. Kenny will be staying with the Company as a consultant. The other responsibilities that had fallen to him as CEO such as administrative, financial strategy, investor and community relations will be reallocated to others within the management team.

Many of these redistributed responsibilities will fall directly to Arianne’s current Chief Operating Officer Jean-Sebastien David. Already a senior member of the management team, Mr. David was involved in large part with many of the operations of the Company. By being based in Chicoutimi, Mr. David knows all of the staff, many of the local officials, government officials and members of the First Nations communities and, has interacted regularly with them over the last few years since his original appointment to the Company.

On Arianne’s second quarter financial results, COO Jean-Sebatien David said:

We are pleased with the success of our second quarter. Amongst other highlights, the success of our July financing demonstrates continued support from our leadership team and existing shareholders towards the development of our world-class Lac à Paul Project.  It provides us with the necessary capital to continue timely project advancement, including activities essential to securing the environmental permit and further project optimization.  Our continued commitment to defining Lac à Paul’s upside potential and strengthening the Project’s economics was evident in the second quarter of 2014.

Click here to read the Arianne Phosphate (TSXV:DAN) press release
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Arianne Phosphate Closes First Tranche of $8 Million Private Placement

Arianne Phosphate Inc. (TSXV:DAN) announced today that it has closed the first tranche of a private placement financing to raise gross proceeds of $5,631,000. The majority of subscribers were existing shareholders of Arianne.

As quoted in the press release:

As well, directors and officers of the Company subscribed to the Offering for aggregate gross proceeds of $186,000. Of the $5,631,000 raised, $500,000 will be held in escrow pending the filing of certain documents requested by the TSX Venture Exchange (the “Exchange”). A second tranche for up to $2.369M is expected to close in the next few weeks, for total gross proceeds of up to $8M (the “Offering”).

Arianne CEO, Brian Kenny, said:

Today’s financing announcement is encouraging on a number of levels. First, it demonstrates continued support from both our leadership team and existing shareholders to the development of our world-class Lac à Paul Project. It also provides us with the necessary capital to continue timely project advancement, including activities essential to securing the environmental permit and further project optimization.

Click here to read the Arianne Phosphate (TSXV:DAN) press release
Click here to see the Arianne Phosphate (TSXV:DAN) profile.