Skip to main content

Arianne Phosphate publishes 2Q19 financial results

Published by , Editor
World Fertilizer,

Arianne Phosphate, a company in the development stage of the Lac à Paul phosphate mine in the Saguenay-Lac-Saint-Jean region of Quebec, Canada, reports its operating and financial results for the three-month and six-month periods ended 30 June 2019.

"The second quarter of the year has been very rewarding for the company," said Brian Ostroff, CEO of Arianne Phosphate. "During this time, Arianne received ongoing support through investments, additional technical professionals, and in-depth discussions with potential partners and product owners. These steps are necessary for the development of our future Lac à Paul mine. Our aspirations are to bring our world-class phosphate mine into production as soon as possible and release significant value for our investors and stakeholders."

2Q19 operational and financial highlights

  • In August 2019, Arianne closed a private placement financing for gross proceeds of CAN$691 050. Under the terms of the offering, the company issued 1 255 455 units at a price of CAN$0.55 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of CAN$0.75 per share until 21 August 2021.
  • In June 2019, Arianne signed an unfinalised memorandum of understanding with SINOCONST, a major Chinese public company. Under the terms of the agreement, Arianne and SINOCONST have agreed to put in place a definitive agreement regarding the development of the Lac à Paul project, which would include the complete financing of the project. In parallel, efforts to secure product purchase contracts are planned to be put in place by SINOCONST in order to support the overall financing of the project. SINOCONST's participation in the development of Lac à Paul is directly related to project funding commitments.
  • In May 2019, the company announced that the Québec government is investing CAN$1 500 000 by way of a private placement on an equity basis. Under the terms of the Offering, the Québec Government subscribes 3 671 970 common shares of the company at a price of CAN$0.4085 per share; this price represents the volume-weighted average price over the 5 days preceding the closing of the financing. All securities issued upon completion of the Offering are subject to a holding period under the applicable four (4) month and one (1) day period ending 6 September 2019.
  • In May 2019, the company announced that Arianne's shareholders have re-elected Messrs. Dominique Bouchard, Brian Ostroff, James Cowley, David DeBiasio, Marco Gagnon, Siva Pillay, Steven Pinney, Claude Lafleur and Jean Fontaine as directors of the Corporation at the annual general meeting of shareholders held on 29 May 2019 in Montréal.

Subsequent highlights at the end of the quarter

  • In July 2019, the company announced that its transportation logistics efforts have made significant progress and will benefit the overall project and its profitability. Arianne and its partners have developed a design that will reduce the weight of the transport trucks and increase the load. Once integrated, this will result in fewer trucks on the road, which will increase safety and reduce the overall impact on the environment. In addition, this design will generate economies of scale, which will reduce the cost of transporting Arianne's phosphate concentrate to the port and will generate a global saving of its project.
  • In July 2019, Arianne announced that Raphael Gaudreault will join the team. Raphael will take over the position of Mining Director for Arianne after recently serving as Director of Planning and Mining Performance at Arcelor.

Financial summary

Arianne is a development company and, as such, did not generate any positive revenue or cash flow in 2Q19. During the second quarter ended 30 June 2019, the company recorded a net loss of CAN$0.6 million (M) for the three-month period and CAN$1.2 million for the six-month period. For the same period in 2018, the company had a loss of CAN$0.04 million for the three-month period and CAN$0.7 million for the six-month period.


As at June 30, 2019, the company had a cash position of CAN$1.2 million. These funds will be allocated to the general working capital and progress of the Lac à Paul project in 2019.


By the end of 2019, Arianne will focus on the progress and development of the Lac à Paul project. Its main objectives are:
  • Complete partnership and funding agreements;
  • Continue to improve the value of the project through optimisation of the project;
  • Continue ongoing discussions with stakeholders.
Arianne's MD&A and the condensed interim consolidated financial statements for the six-month period ended 30 June 2019 are available on the company's website and on SEDAR. ( In addition, the company has announced the departure of David DeBiaisio from the Board of Directors. Arianne would like to thank DeBiasio for his significant contribution to the Society over the years, helping him move from exploration to development.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Fertilizer project news