DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)
SAGUENAY, QC, Sept. 2, 2014 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac À Paul Phosphate Project in Quebec's Saguenay region today is announcing changes to its management personnel as it moves its Lac À Paul project through its next phase of development. These changes are being introduced to further focus the Company on its next major milestones. These primary milestones are: permitting; First Nations; improvements to OpEx/CapEx; and securing a strategic partner.
As these milestones are pursued, Brian Kenny has requested that his focus be exclusively aimed at reducing both Capex and Opex which includes optimizing the transportation plan. Although able to address this during his tenure as CEO, other responsibilities that came with the CEO office did not allow him the time required to fully focus on such an important part of moving the project forward.
"I think we have a great project here and believe that my efforts are best served in my main area of expertise and, where I can have the greatest impact," Mr. Kenny stated. "I look forward to continue working with the team and allowing us to finish the goal we have set; to see a world class phosphate mine operating here in Quebec."
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 Kenny's primary focus, the belief was that the CEO title was no longer applicable and Mr.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.
"Having had similar responsibilities in past, I have seen firsthand what is required to get projects permitted and built," Mr. David said. "Originally from the region, I am also very aware of what this mine means to the community. I look forward to the challenges that lie ahead and we [Arianne] will do everything we can to see this project happen."
Supporting Mr. David's expanded role, Mr. Pierre Fitzgibbon will become Executive Chairman of Arianne, allowing him to play a more active role in the financial and strategic initiatives of the Company. Mr. Fitzgibbon sits on the board of several publically traded companies and has served in many senior positions including CFO for the National Bank of Canada, Vice Chairman of Investment and Corporate Banking at National Bank Financial and sat on the Board of the Caisse de DÉpÔt et Placement du Quebec, a $200 billion pension fund. Most recently, Mr. Fitzgibbon served as CEO of Atrium Innovations, a company acquired early this year for over $1 billion.
"I look forward to being more personally involved with Arianne and supporting the team as required," said Mr. Fitzgibbon. "This move is well timed following my transition out of Atrium and gives me the ability to use my skills and contacts towards what should be another Quebec success story."
Arianne has also named Dino Fuoco as its new Chief Financial Officer. Mr. Fuoco is a graduate of the University of Montreal and comes with 30 years experience in business management. Mr. Fuoco has served as an officer in several large enterprises including John Labatt (now a division of Anheuser-Busch InBev), Provigo (now a division of Loblaw Companies Limited) and Alliance Forest Products Inc. (later acquired by Bowater Canada). In addition to his activities in the private sector, Mr. Fuoco has also served in senior positions with government organizations including Executive Vice-President and CFO of the SociÉtÉ GÉnÉral de Financement du Quebec and has been a Board member of Hydro-Quebec Capitech (venture capital).
"I look forward to my new role at Arianne Phosphate," commented Mr. Fuoco. "I see many similarities to past roles I have played, helping a Company go through the steps of becoming a major factor in their industry, either alone or as part of a larger structure."
These changes are effective immediately and are part of Arianne's strategy to advance its project.
"These moves allow those at the Company to focus on their key areas of expertise, whether they be operational, permitting, cost cutting/project optimization or financial," said Mr. Fitzgibbon. "All the pieces are there and this alignment of responsibilities should allow us to achieve our goals as quickly and efficiently as possible."
These changes come about on the back of a very successful six months at Arianne which has seen the Company increase inferred resources, identify potential new zones, lower its projected operating costs and secure a favorable power agreement with Hydro Quebec. These advancements have also occurred at a time when the uncertainty surrounding many countries involved in phosphate rock production have increased and the world will continue to look for stable and reliable production.
Second Quarter Corporate and Financial Results
Arianne reported its corporate and financial results for the second quarter ended June 30, 2014. Arianne's Management Discussion and Analysis (MD&A) and Financial Statements for the quarter are available on the Company's website and on SEDAR at www.sedar.com .
"We are pleased with the success of our second quarter," commented Jean-Sebatien David, COO of Arianne. "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."
Mr. David added, "We fortified Lac À Paul's already robust economics by securing a favorable power agreement with the Quebec Government and our metallurgical work has lowered our production cost for phosphate concentrate which will result in a significant cost savings over the mine life."
Q2 2014 Corporate & Financial Highlights
Post – Q1 2014 Highlights
Announced winter 2014 drilling results, including the:
Addition of 78Mt of inferred resource at 5.34% P2O5 at the Nicole Zone
Identification of a new potential target zone in the range of 260Mt - 390Mt with grades ranging from 5.34% to 7.13% P2O5
Announced preliminary results from metallurgical optimization tests which concluded that Arianne will be able to realize significant cost savings over the 26-year mine life. By eliminating two reagents from its production of phosphate concentrate, Arianne will be able to lower per tonne production cost thus bringing down our overall OpEx.
Secured favourable power agreement with the Ministry of Energy and Natural Resources in Quebec which gives the Lac À Paul Project a preferential and reduced power rate during the construction and operation of Lac À Paul
Completed sale of its non-core Opinaca and Black Dog properties, which is consistent with its corporate strategy to focus on Lac À Paul's development;
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 a first tranche of a private placement which raised gross proceeds of $5,631,000. A second tranche of $2,369,000 is expected to close in September for total gross proceeds of up to $8,000,000 (refer to the press release dated July 31, 2014 for full details).
In Q2 2014, Arianne did not generate revenue or positive cash flows as the Company is still a development-stage entity. In the three months ended June 30, 2014
, the Company incurred a net loss of $1,639,487
compared to a loss of $1,508,003
in the same period in the 2013. The Company's net loss and cash burn are consistent with its budget.Liquidity
At quarter-end, the Company had $2,108,307
of cash on hand and working capital of $706,818
, which includes $615,388
in cash reserved for exploration and evaluation expenses. The Company's working capital will be allocated towards completing critical project development work in 2014.
In addition, since July 1, 2014
, the Company has received net proceeds of $5.1 million
from the first tranche of the $8 million
financing announced in July (see press release dated July 31
, 2014.) Based on current estimates for future project development, Arianne anticipates it will need additional financing in 2015.
About Arianne PhosphateArianne Phosphate
("Arianne Phosphate Inc.
) 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 92,868,755 million shares outstanding.
Neither TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange
) accepts responsibility for the adequacy or accuracy of this release.
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Forward Looking Statements and Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada
and the United States
(collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.
SOURCE Arianne Phosphate Inc.