02:52:57 EDT Fri 29 Mar 2024
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Arianne Phosphate Inc
Symbol DAN
Shares Issued 97,225,755
Close 2016-05-24 C$ 1.05
Market Cap C$ 102,087,043
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Arianne Phosphate talks appointments in Q1 report

2016-05-24 17:26 ET - News Release

Mr. Jean-Sebastien David reports

ARIANNE PHOSPHATE REPORTS Q1 2016 FINANCIAL RESULTS

Arianne Phosphate Inc. has released its first quarter financial results for the three-month period ended March 31, 2016. All amounts are in Canadian dollars unless noted.

First quarter financial and operational highlights

  • Appointed Jean Lamarre to the company's board of directors as chairman: Mr. Lamarre's experience in international business development, finance and corporate strategy will be significant as Arianne progresses with the development of its Lac a Paul project.
  • Named Brian Ostroff as the company's chief executive officer: Mr. Ostroff's past experience in finance and corporate structuring will help Arianne as it pursues both strategic partnerships and securing the necessary financing to develop the Lac a Paul project.
  • Advanced discussions with potential corporate, strategic and financial partners: The discussions centre on determining the types of financing structures and amounts of financing needed to begin construction of the company's Lac a Paul project.
  • Contributed to the port facilities project being carried out by the Port of Saguenay: This work will allow the Port of Saguenay to secure necessary federal government approval for the construction of expanded port facilities.

"[Two thousand fifteen] was a tremendous year for Arianne as we hit on all of our major milestones," said Brian Ostroff, chief executive officer of Arianne Phosphate. "With Lac a Paul now fully permitted, our first quarter efforts have been focused on discussions with potential corporate, strategic and financial partners aimed at moving the project towards development, and we are pleased with the interest we have been receiving from those we have been in discussions with. The addition of Mr. Lamarre to our board as chairman will also help to accelerate our efforts through 2016."

Financial summary

Arianne is a development-stage company and, as such, did not generate revenue or positive cash flow in the first quarter. In the period ended March 31, 2016, the company incurred a net loss of $849,935, or one cent per share. This compares with a net loss of $891,200, or one cent per share, for the same period of 2015. The year-over-year decline in net loss was due to a series of measures that the company implemented to reduce its operating expenses. The company's net loss and cash burn in the first quarter of 2016 are consistent with other development-stage mining companies.

Liquidity

As at March 31, 2016, the company had working capital of $87,357 and access to $2.1-million from its non-revolving credit facility. This compares with negative working capital of $288,027 as at Dec. 31, 2015. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing before the end of 2016.

Outlook

In 2016, Arianne will be focused on the continuing advancement and development of its Lac a Paul project. Expected milestones in 2016 include:

  • Continuing discussions with potential partners and financiers aimed at securing financing for the construction and development of the Lac a Paul project;
  • Continuing optimization of the Lac a Paul project, including reducing cash operating production costs and capital expenses;
  • Continuing efforts to engage and communicate with the company's stakeholders and the community at large;
  • Assisting the Port of Saguenay as it secures its environmental permitting from the Canadian Environmental Assessment Agency.

Arianne's management discussion and analysis and financial statements for the three-month period ended March 31, 2016, are available on the company's website and on SEDAR.

Qualified person

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.

We seek Safe Harbor.

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