Arianne Enters Into a Memorandum of Understanding Partnering to Explore Downstream Production of Phosphoric Acid

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 Quebec’s Saguenay-Lac-Saint-Jean region, is pleased to announce the signing of a Memorandum of Understanding (“MoU”) with a major global producer of sulfuric acid, to explore the possibility of setting up a downstream operation that would produce phosphoric acid.
Although currently at an early stage of discussion, the venture is assessing the construction of a facility capable of producing a high quality phosphoric acid that could produce for both the fertilizer market and for specialty applications.
The facility would see the delivery of Arianne’s high purity phosphate rock along with sulfuric acid provided by one of the world’s largest producers and suppliers of sulfuric acid.
The joint venture would benefit from being able to have direct access to the necessary inputs from producers focused on their specific segment of the market and thus, the cost and competitive advantages that would come as a result.
Brian Ostroff, Chief Executive Officer of Arianne Phosphate, said:

“Today there are many operations that are challenged by their reliance on others for their rock supplies and the risks of this have become very evident with recent unforeseen supply disruptions.
This venture would allow both companies to take their currently non-integrated production, combine them, and create something of considerable value. It really is a case of one plus one equals three and would create an entity immune from external supply shocks.”

Click here to read the full text release.