Mr. Brian Ostroff reports
ARIANNE EXTENDS CREDIT FACILITIES AND CLOSES LOAN FINANCING
Arianne Phosphate Inc. has extended its secured credit facilities held with Mercury Financing Corp. The extended secured credit facilities are in the aggregate amount of $22,720,810.52 and will have a maturity of June 30, 2020. These credit facilities will continue to bear interest at an annual rate of 15 per cent, with all interest capitalized through maturity. The company has also issued Mercury 22,417,458 non-transferable warrants with an exercise price of 42.5 cents per share. The warrants are exercisable through June 30, 2020. As required under the policies of the TSX Venture Exchange, 17,338,739 non-transferable warrants originally issued to Mercury have been cancelled as a result of the new extension.
Arianne has also closed on an unsecured loan in the aggregate amount of $1.5-million with third party lenders. This loan will bear interest at a rate of 12 per cent per year and mature on Dec. 19, 2019. In conjunction with the loan, Arianne issued the lenders 2,117,646 non-transferable warrants at an exercise price of 42.5 cents per share, exercisable until Dec. 19, 2019.
The warrants issued in connection with the credit facilities extension and the loan are subject to a hold period of four months and one day expiring on April 20, 2019.
"The extension of our credit facility removes a distraction for our company and allows us to continue to focus on the task of advancing our project into development," said Brian Ostroff, chief executive officer of Arianne Phosphate. "For the year, Arianne has continued to advance the project with many milestones hit: the signing of two off-take agreements, the Port of Saguenay's receipt of its permit for a maritime facility, and continued government and stakeholder support, I believe has us on a strong footing going into 2019 as we look to complete the financing for our Lac a Paul project."
Jean-Sebastien David, PGeo, a qualified person under National Instrument 43-101, has approved this release. Mr. David is also the company's chief operating officer.
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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