DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTCQX (USA)
SAGUENAY, QC, Jan. 8, 2025
/CNW/ - Arianne Phosphate (the "Company" or "Arianne")
(TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a development-stage
phosphate mining company, advancing the Lac à Paul project in
Quebec's Saguenay-Lac-Saint-Jean
region is pleased to provide a review of 2024 and discusses its
corporate priorities in 2025.
Phosphate Macro and the LFP
The phosphate macro for 2024 was strong as battery demand
continued to grow rapidly in combination with the traditional
growth of fertilizer demand. This past year saw the
lithium-iron-phosphate ("LFP") battery begin to surpass the NMC
battery in many markets as, aside from the battery's dominance in
the Chinese EV market, many Western automakers have now also
started to adopt the battery technology. Further, the rapid growth
in Energy Storage Systems ("ESS") has advanced well beyond original
expectations and is adding significant demands on an already
tightly supplied phosphoric acid market. These events have come at
a time when there is a growing understanding in the West that there
is a competitive disadvantage relative to China when it comes to access to the necessary
critical materials, production facilities and technological
capability. This has resulted in the procurement and production of
these batteries becoming a national priority among many Western
countries.
The recognition of the growth and importance of the LFP coupled
with the fact that today, well over 90% of all LFP batteries are
produced in China, led both the
Canadian and Quebec governments to
add phosphate to their respective critical mineral lists in 2024.
This has been a very positive development for Arianne as its
Quebec based Lac à Paul project is
globally understood to be the preeminent phosphate development in
the West. Phosphate's addition to the critical minerals lists has
added to the importance and awareness of the project and will allow
access to various government programs that provide funding for
critical mineral projects.
Phosphoric Acid Facility
Given the growing importance of phosphate, including its use as
a battery material, in 2024 Arianne began its formal pursuit of the
construction of an operation centered on the production of purified
phosphoric acid ("PPA"). To this end, the Company embarked on a
prefeasibility study that was completed in the second quarter of
2024 (see press releases dated June 27,
2024 and November 8, 2024).
The facility will take advantage of the igneous nature of phosphate
in the region; Lac à Paul having the largest known greenfield
deposit. Using igneous-based phosphate will allow for the easy
conversion of concentrate to PPA at a preferred ratio relative to
other operations that use traditional sedimentary based
phosphate.
The study affirmed the positive economics surrounding the
construction of a PPA plant in the Saguenay region of Quebec, with access to the output from
Arianne's Lac à Paul deposit, as well as other early-stage
deposits, should they materialize. The facility would have a
maximum production capacity of 350,000 tonnes of battery/food grade
PPA, as well as 220,000 tonnes of a second-tiered acid used for
animal feeds and specialty fertilizers. The facility would be the
largest PPA producer outside of China and have an extremely competitive
cash-cost profile. As the West looks to access critical materials
outside of China, it is believed
that this facility would tie into a more secure supply
chain.
Strategic Investment
The improving macro for phosphate along with Arianne's corporate
achievements throughout the year culminated in the Company
receiving a strategic investment from a large, global mining
company (see Press Release dated October 17,
2024). This investment continues to recognize the growing
interest in phosphate by miners as well as those directly involved
in the battery technology, EV and fertilizer industries.
The Year Ahead
Going into 2025, Arianne is looking to build on its successes of
2024 and move its projects, upstream and downstream, forward. As
the Company believes that strong partners will be necessary to
develop the opportunities, Arianne will continue to work with its
strategic investor as well as the numerous other companies that
have entered into Confidentiality Agreements and are pursuing their
due diligence. The Company is also continuing its dialogue with
both the Quebec and Canadian
governments to unlock these opportunities that will allow for
development. Arianne has been able to leverage high-level
introductions that have been made to 'would-be' participants in the
project.
Operationally, Arianne will be advancing its work on its
proposed downstream facility. The Company has commenced further
studies to optimize the ratio of PPA to second-tiered acid. Already
recognized as an extremely high ratio (roughly 2:1), Arianne sees
the possibility of squeezing additional gains in its production of
PPA using its high-quality phosphate concentrate. Any incremental
improvements would continue to enhance the profitability profile of
the facility and generate additional capacity for companies the
require the material for their needs. The Company also believes
that there are additional enhancements that can result in lower
costs and continues to work with various groups on this.
Investor Awareness
Lastly, given the improvement in the global macro for phosphate
and the Company's achievements over the last year, Arianne will
look to build a greater awareness of the Company within the
investment community and enhance its investor and public relations'
programs. Arianne's Lac à Paul deposit currently has the world's
largest greenfield resource, has easy access to needed
infrastructure, enjoys strong social acceptability and is fully
permitted. Additionally, the plan of building a downstream
operation has added to the attractiveness of the opportunity and
its economic profile. A greater awareness and understanding of the
Company and, achieving the milestones set forth, should help to
close the significant gap that exists between market value and
NPV.
Other Matters
In addition, Arianne today has announced the granting of 570,000
stock options to its senior management and directors. The stock
options entitle its holder to purchase one common share of the
Company until January 8, 2035 at a price of $0.165; this being the closing price of the
Company's shares on the trading day preceding the date of the
grant. These options are all subject to respective vesting periods
and subject to regulatory approval.
About Arianne Phosphate:
Arianne Phosphate Inc. (www.arianne-inc.com) is developing the
Lac à 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
("Feasibility Study to Produce 3Mtpy of High Purity Apatite
Concentrate at the Lac a Paul Project, Québec, Canada" released on November 13, 2013). The Company has 202,890,210
shares outstanding.
Qualified Person
Raphael Gaudreault, eng.,
Qualified Person by NI 43-101, has approved the technical
disclosure in this release. Mr. Gaudreault is also the Company's
Chief Operating Officer.
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.
Follow Arianne on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing
News: http://resourceinvestingnews.com/?s=Arianne
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, information relating
to the advancement of a downstream phosphoric acid project, the
acceleration of the discussions with other parties in connection
with the 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 labor 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 à
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 approval, 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 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.