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Under the terms of the agreement, the buyer has entered into a long term contract to purchase Arianne’s phosphate concentrate which, will be shipped to the buyer’s processing plant for further processing into downstream phosphate products
Arianne Phosphate (TSXV:DAN,OTCMKTS:DRRSF,FWB:JE9N) has announced the formal execution of its first offtake agreement. Under the terms of the agreement, the buyer has entered into a long term contract to purchase Arianne’s phosphate concentrate which, will be shipped to the buyer’s processing plant for further processing into downstream phosphate products.
As quoted from the press release:
The offtake agreement also has a mechanism whereby it can be extended beyond the initial contract period and applies pricing that accounts for the high quality of Arianne’s concentrate.
After a lot of hard work, this agreement represents a major milestone for our company,” said Brian Ostroff, Arianne Phosphate’s CEO. “Comprising part of our annual output, this agreement accomplishes many objectives. First, receiving an offtake from a well-known, bankable, industry player validates our product and confirms the marketability of it. Further, this agreement also confirms a pricing model that accounts for Arianne’s high-purity, low-contaminant concentrate. Lastly, we also now have a template on how to move from MoU to formal agreement and, what it takes to get there.”
Arianne currently has several other MoUs in place and is working towards turning them into formal purchase agreements. The completion of these contracts are a necessary component to formalize the Company’s project financing and have become central to the Arianne’s ongoing efforts to move its Lac à Paul project into development.
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