Arianne Enters Into a Memorandum of Understanding Partnering to Explore Downstream Production of Phosphoric Acid
DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC (USA)
SAGUENAY, QC, June 8, 2017 /CNW Telbec/ - Arianne Phosphate (the "Company" or "Arianne") (TSXV: DAN) (OTC: DRRSF)(FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac Paul project in Quebec's Saguenay-Lac-Saint-Jean region, is pleased to announce the signing of a Memorandum of Understanding ("MoU") with a major global producer of sulfuric acid, to explore the possibility of setting up a downstream operation that would produce phosphoric acid.
Although currently at an early stage of discussion, the venture is assessing the construction of a facility capable of producing a high quality phosphoric acid that could produce for both the fertilizer market and for specialty applications. The facility would see the delivery of Arianne's high purity phosphate rock along with sulfuric acid provided by one of the world's largest producers and suppliers of sulfuric acid. The joint venture would benefit from being able to have direct access to the necessary inputs from producers focused on their specific segment of the market and thus, the cost and competitive advantages that would come as a result.
"This would certainly be an interesting opportunity for both organizations," said Brian Ostroff, Chief Executive Officer of Arianne Phosphate. "What we know about the industry is that integration is a key driver of profitability and that's why 85% of the world's phosphate rock production is owned and integrated by the organizations that make the downstream products. Today there are many operations that are challenged by their reliance on others for their rock supplies and the risks of this have become very evident with recent unforeseen supply disruptions. This venture would allow both companies to take their currently non-integrated production, combine them, and create something of considerable value. It really is a case of one plus one equals three and would create an entity immune from external supply shocks."
The MoU will allow for both companies to combine their respective market knowledge and address how best to move the potential venture forward. Costs, logistics and end markets will all continue to be reviewed to determine the full extent of the opportunity. Matters such as capacity, end products and location will be further studied to better assess feasibility and decisions regarding a possible business venture made from that review.
About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing the Lac Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminants. The Company has 97,648,080 million shares outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Cautionary Statements Regarding Forward Looking Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). Forward-looking information includes, but is not limited to, anticipated quality and production of the apatite concentrate at the Lac Paul project. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock price; risks related to changes in commodity prices; sources and cost of power facilities; the estimation of initial and sustaining capital requirements; the estimation of labour and operating costs; the general global markets and economic conditions; the risk associated with exploration, development and operations of mineral deposits; the estimation of mineral reserves and resources; the risks associated with uninsurable risks arising during the course of exploration, development and production; risks associated with currency fluctuations; environmental risks; competition faced in securing experienced personnel; access to adequate infrastructure to support mining, processing, development and exploration activities; the risks associated with changes in the mining regulatory regime governing the Company; completion of the environmental assessment process; risks related to regulatory and permitting delays; risks related to potential conflicts of interest; the reliance on key personnel; financing, capitalization and liquidity risks including the risk that the financing necessary to fund continued exploration and development activities at Lac Paul project may not be available on satisfactory terms, or at all; the risk of potential dilution through the issue of common shares; the risk of litigation. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in commodity prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated, including the completion of any proposed business venture or combination in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
SOURCE Arianne Phosphate Inc.
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