Mr. Brian Ostroff reports
ARIANNE EXTENDS LOAN FINANCING
Arianne Phosphate Inc. has extended on a $4.1-million loan with various third party lenders.
The extended loan is in the aggregate amount of $4.1-million and will have a maturity of Sept. 28, 2021. The loan will bear interest at 8 per cent, paid semi-annually.
As part of the loan extension, the company has issued non-transferable warrants in the amount of 1,818 per $1,000 face value (for a total of 7,453,800 warrants), with each warrant entitling the holder to purchase one common share of the company at a price of 55 cents per share for a term of two years expiring on Sept. 28, 2021. These warrants will replace warrants that were issued as part of the original loan in September and October of 2016 (see press release dated Oct. 28, 2016).
"The continued support of our investors is a necessary element as we move our Lac a Paul project towards development," said Brian Ostroff, chief executive officer of Arianne Phosphate. "Trading at only a fraction of our [net present value], Arianne continues to hit milestones targeted at securing the necessary financing that will unlock the considerable value of this asset. The willingness of our lenders to continue to be part of this project, along with the ongoing support of all stakeholders, demonstrates the importance of this project to the region, as well as the sizeable financial gains to be had on the part of investors."
The securities issued in connection with the extension of the loan are subject to a regulatory four-month-and-one-day hold period expiring on Jan. 28, 2020. The extension of the loan remains subject to the final approval of the exchange.
Arianne announces a 540,000-stock-option grant to members of the board of directors and management. Each option entitles the holder to purchase one common share of the company until Sept. 29, 2029, at a price of 44 cents per share, this being the closing price of the company's shares on the trading day preceding the date of grant. The options are subject to a three-year vesting period under the plan and the policy, and are also subject to regulatory approval.
Jean-Sebastien David, PGeo, qualified person by 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). The company has 111,438,250 shares outstanding.
We seek Safe Harbor.
© 2019 Canjex Publishing Ltd. All rights reserved.