SAGUENAY, QUÉBEC--(Marketwired - May 29, 2013) - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE:DAN), (FRANKFURT:JE9N), (OTCBB:DRRSF) today filed its financial statements for the first quarter of 2013.
During the first quarter and early part of Q2 2013, Arianne made significant progress on the Feasibility Study (FS) of the Lac à Paul phosphate project, including:
- The Company announced that the pilot-scale testing of Lac à Paul phosphate ore has now confirmed the commercial scale-ability of column flotation in achieving 39% P 2 O 5 concentrate with a recovery rate of 90%. With completion of its Validation of Apatite Flowsheet Using Column Flotation Report, Corem, of Québec City (Québec), demonstrated that the Paul Zone ore can be processed with this commonly-used technology to achieve superior product quality at a very high recovery rate, well surpassing the quality and recovery of most phosphate rock mines worldwide. A 39% phosphate concentrate with undetectable levels of heavy metals will make the Paul Zone product one of the most sought-after phosphate concentrates worldwide, particularly to high-value industrial, animal feed and food-grade phosphate product producers (complete details in May 21, 2013 press release);
- The Company sold its Brouillan Ouest and Héva properties to Exploration NQ Inc. (TSX VENTURE:NQE) and Midland Exploration Inc. (TSX VENTURE:MD) respectively. Both of these decisions give effect to Arianne's strategy of focusing its efforts on developing its open-pit phosphate mine project at Lac à Paul and selling off its non-phosphate assets (complete details in May 22, 2013 press release);
Mr. Jim Cowley, President of the Company, commented: "Arianne continued to make significant progress on its Feasibility Study in the first quarter of 2013". In regards to the recently announced pilot scale results, he also noted: "This test confirms column flotation as the optimal processing technology for Paul Zone ore and demonstrates that superior quality concentrate from Paul Zone ore can be produced on a commercial scale. This latest metallurgical test represents another essential milestone for Arianne, thereby confirming both a critical process design element and a product marketing advantage for the Lac à Paul Project."
The Company will be holding its annual general meeting in Montréal on May 29, 2013, and shareholders are encouraged to attend.
Key milestones to come in 2013 include the following:
- Submitting the Environmental and Impact Assessment (EIA) with the preliminary version of the EIA expected at the end of Q2 2013;
- Completing its Feasibility Study under the guidance of Cegertec Worley Parsons during Q3 2013;
- Continuing the process to obtain permits required for the operation of the Lac à Paul mine;
- Adding new members to the team to further develop the Lac à Paul project;
- Hosting additional public consultation meetings to discuss all aspects of the Lac à Paul project in the municipalities affected.
Financial Summary
The net loss for the three month period ended March 31, 2012 was $2,169,703 compared to a net loss of $331,630 for the same period in 2012.
This increased loss in the first quarter 2013 is mainly due to the impact of deferred taxes of $1,268,577. This amount comes from the expected manner of recovery of its prospection and evaluation assets as its exploration and evaluation assets will likely be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability of $1,268,577 and a corresponding deferred tax expense.
The increased loss is also due to higher administrative costs of $433,978 related to the increased level of activity at the Company for the development of the Lac à Paul project, increased public consultations with local communities, and increased discussions with shareholders and other stakeholders.
The net loss for the quarter also includes $56,616 ($2,565 in 2012) in share-based compensation expense and represents the value of share purchase options granted but not vested.
In addition, the fair value of marketable securities decreased by $25,502 during the first quarter of 2013 as compared with a gain of $161,739 for the same period in 2012.
The Company ended the first quarter with cash of $4,891,638, access to undrawn credit lines of $600,000 and mining tax credit receivables of $2,975,580. Based on current spending estimates for the Feasibility Study and future project development, Arianne anticipates it will need additional financing before the end of 2013. The Company expects it will be able to raise the required amount of funds at competitive rates.
The Company's Interim Financial Statements and accompanying management's discussion and analysis for the quarter ended March 31, 2013 and the year ended December 31, 2012 are available on the Company's website and on SEDAR at www.sedar.com . Unless otherwise noted, all figures in the press release are reported in Canadian dollars.
Arianne Phosphate ( www.arianne-inc.com ) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac-Saint-Jean region of Québec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P 2 O 5 with little or no contaminant. The Company currently has 77 million shares outstanding.
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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.
