Arianne Phosphate (TSXV:DAN) has reported its financial results for the three and 12 month periods ending December 31, 2016.
As quoted in the press release:
“The year 2016 was one of hard work and advancement for the Company,” commented Brian Ostroff, CEO of Arianne Phosphate. “Our recently announced agreements with Hydro-Québec, Constructions Proco Inc., Rio Tinto and ABB Inc. have all come about as a direct result of the team’s hard work over the past year and has catapulted the project forward. Our belief is that we will be able to continue to negotiate and close on significant agreements, technical, financial and strategic, and see Lac à Paul advance.”
2016 Financial and Operational Highlights
• In September 2016, the Company exercised options held on land at Sainte-Rose-du-Nord representing $709,650. The land is projected to be the future site of the port and is required for the development of the maritime terminal as well as the access roads and supporting infrastructure. It is from this site that Arianne will be shipping its high purity phosphate concentrate to customers around the world.
• In October 2016, the Company closed a second tranche of a loan financing representing $1.1 million with various third party lenders. The terms are the same as the first tranche (see below).
• In September 2016, the Company closed on a $3 million loan with various third party lenders (the “Loan”). The loan will bear interest at 8%, paid semi-annually and has a maturity of 3 years with the Company having the ability to repay the loan after one year at its option. As part of the loan, the Company has issued non-transferable warrants in the amount of 800 per $1,000 face value (for a total of 2,400,000 warrants), with each warrant entitling the holder to purchase one common share of the Company at a price of $1.25 per share for a term of 3 years expiring on September 28, 2019. Additionally, following the expiry of the regulatory hold period, should the closing price of Arianne’s common shares on the TSX Venture Exchange (the “Exchange”) be equal to or higher than $2 for 10 consecutive days, the Company shall have the right to force the exercise of the warrants by providing the warrant holders with a 30-day notice period, following which the warrants will automatically expire.