“I believe that this greatly increases the chances of our project coming to fruition,” said CEO Brian Ostroff.
Arianne Phosphate (TSXV:DAN) has moved a step closer to securing a shipping hub for material produced at its development-stage Lac a Paul phosphate project in Quebec.
The company had hoped that the well-known Port of Saguenay could expand in order to facilitate its international export goals, and it seems the government has answered its wish.
The port has received initial approval from Canada’s minister for the environment and climate change to move ahead with construction of a maritime terminal facility on the north shore of the Saguenay River.
“We are very pleased by the decision,” Jean-Sebastien David, COO of Arianne Phosphate, said in a Wednesday (October 24) announcement.
“This result comes after a long period of collaboration with the Port and involved many environmental studies, public consultations and a very thorough and rigorous environmental impact assessment that was conducted by the Canadian Environmental Assessment Agency,” he continued.
The Port of Saguenay operates a year-round deep-water port facility with direct access to major North American rail and highway networks. It is the only public port in the Saguenay-Lac St. Jean region providing access to Eastern Canada and Ontario.
“With conditions now set, and the ongoing responsibilities on the part of the Port and its users well defined, this approval will allow Arianne and its stakeholders to receive the economic benefits of the Lac à Paul project while acting in an environmentally responsible and sustainable fashion,” added David.
For Arianne Phosphate, the port will serve as a crucial gateway, allowing the company to take full advantage of its Lac a Paul project. According to a 2013 feasibility study, Lac a Paul will produce 3 million tonnes of phosphate concentrate annually for 26 years, with a net present value of US$1.9 billion.
“This is a very decisive event for our company and, the region as a whole,” said CEO Brian Ostroff. “I believe that this greatly increases the chances of our project coming to fruition and something that many of the potential customers and financiers we are in discussions with wanted to see happen.”
Shares of Arianne Phosphate were up 3.85 percent on Wednesday, trading at C$0.54.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.