Mr. Brian Ostroff reports
ARIANNE PHOSPHATE REPORTS CORPORATE AND FINANCIAL RESULTS FOR FIRST QUARTER 2019 AND ANNOUNCES ELECTION RESULTS OF ITS 2019 ANNUAL GENERAL MEETING
Arianne Phosphate Inc. has released its financial results for the three-month period ended March 31, 2019.
"First, I want to thank our shareholders and stakeholders for their support as we continue to advance our Lac a Paul project towards production," said Brian Ostroff, chief executive officer of Arianne Phosphate. "During the first quarter, we were able to continue to add quality personnel to our board and management; enter into an agency agreement with a prominent Indian fertilizer trader; and receive the continued support of the government of Quebec by way of a further investment in Arianne. These events continue to support our activities as we pursue our discussions with offtakers, financiers and potential partners and, thus, move our project towards development and unlocking the considerable value that comes with it."
Q1 2019 financial and operational highlights:
In March, 2019, the company announced that it has entered into an agency agreement with Compagnie Indo Francaise de Commerce Pvt. Ltd. (CIFC) to market and sell Arianne's high-purity, low-contaminant phosphate concentrate into the Indian market. Based in New Delhi, India, Compagnie Indo Francaise de Commerce is a private company founded in 1967. CIFC's business includes the trading, sale, marketing and supply of critical raw materials to India, including fertilizers, agricultural chemicals and animal feeds.
In February, 2019, the company announced the appointment of Jean Fontaine to the company's board of directors. Mr. Fontaine is the founder and president of JEFO Nutrition Inc., a global leader in high performance non-medicated nutritional solutions for animals. Founded in 1982, JEFO has successfully grown its business and its products are now marketed in 80 countries.
In January, 2019, the company announced the appointment of Andrew Malashewsky as its new chief financial officer. Mr. Malashewsky is replacing James Cowley, who has been serving as Arianne's interim chief financial officer. Mr. Malashewsky is a chartered professional accountant and began his career with Grant Thornton LLP before joining JDS Energy & Mining.
Subsequent to quarter-end:
In May, 2019, the company had closed a $1.5-million investment from the government of Quebec by way of private placement into the common shares of Arianne. Under the terms of the offering, the government of Quebec is subscribing for 3,671,970 common shares of the company at a price of 40.85 cents per share. The securities issued in connection with the financing are subject to a regulatory hold period of four months and one day expiring on Sept. 6, 2019.
Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in Q1 2019. In the first quarter ended March 31, 2019, the company incurred net losses of $600,000 for the three-month period. This compares with a net loss of $700,000 for the three-month period ended March 31, 2018.
At March 31, 2019, the company had $800,000 cash on hand. These funds will be allocated toward general working capital and advancing development of Lac a Paul in 2019. Based on current spending estimates for future project development, Arianne will need additional financing in the next 12 months.
Through the rest of 2019, Arianne will be focused on the continuing advancement and development of its Lac a Paul project. Expected milestones include:
Complete partnership and financing arrangements;
Continue to enhance the value of the project through project optimization;
Continue the company's dialogue with stakeholders.
Arianne's management discussion and analysis and condensed consolidated interim financial statements for the three-month period ended March 31, 2019, are available on the company's website and on SEDAR.
Arianne's shareholders re-elected Dominique Bouchard, Brian Ostroff, James Cowley, David DeBiasio, Marco Gagnon, Siva Pillay, Steven Pinney, Claude Lafleur and Jean Fontaine as directors of the company during the annual general meeting of shareholders of the company held on May 29, 2019, in Montreal.
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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