04:09:23 EDT Wed 26 Jun 2019
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Arianne Phosphate Inc
Symbol C : DAN
Shares Issued 103,570,610
Close 2018-08-09 C$ 0.53
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Arianne, New Brunswick to review phosphoric acid plant

2018-08-09 10:03 ET - News Release

Mr. Brian Ostroff reports

ARIANNE PHOSPHATE PARTNERS WITH THE PROVINCE OF NEW BRUNSWICK FOR FURTHER REVIEW OF A PHOSPHORIC ACID PLANT

Arianne Phosphate Inc. has partnered with the Province of New Brunswick to further its review of constructing a phosphoric acid plant in Belledune, N.B. As part of this agreement, the government, through Opportunities New Brunswick (ONB), will provide a financial contribution toward the cost of a prefeasibility study, the next step in Arianne's assessment of its downstream opportunity.

"Over the last year, Arianne has been reviewing the possibility of vertically integrating its own phosphate rock production into a facility to produce phosphoric acid," said Brian Ostroff, chief executive officer of Arianne Phosphate. "Our work to date has been positive and, especially with the industry now recovering from a five-year slump, it makes sense to move the idea to the next step -- a prefeasibility study. We are in an enviable position. By having our own phosphate rock, we have the flexibility of either being a seller of our rock to those who need it or going downstream and capturing that additional margin ourselves."

After the review of several locations, Arianne believes that Belledune, N.B., would be a strong location to construct a plant. Most of the crucial infrastructure is already in place, namely: a port that has the additional capacity to handle the company's operation; access to a skilled labour force; easy access to some of the other necessary ingredients beyond Arianne's phosphate rock; and a strong willingness of would-be stakeholders to see this project advance.

"We want to thank all involved up to this point," said Jean-Sebastien David, Arianne Phosphate's chief operating officer. "The support from the government of New Brunswick and Opportunities New Brunswick has been tremendous and has definitely helped steer us in the direction of Belledune. We appreciate their commitment to helping us fully review the possibility and, their contribution towards the prefeasibility study, which will be a deciding factor in our ultimate decision to proceed."

Arianne has already been working with the various groups that will be involved in the study, many of them local to New Brunswick. Once finalized, the prefeasibility study is expected to take roughly five months and will give the company and the province a good look at the opportunity. The results of the study will help isolate next steps.

About Arianne Phosphate Inc.

Arianne Phosphate is developing the Lac a Paul phosphate deposits located approximately 200 kilometres north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high-quality igneous apatite concentrate grading 39 per cent P2O5 (phosphorus pentoxide) with little or no contaminants (feasibility study released in 2013).

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