Highlights

2015 Highlights

Corporate & Financial Highlights

 

Completed permitting process by receiving the approval from the Cabinet of the Government of Quebec for the Lac à Paul project which gives the permission it needs to go ahead with its development, an important step in the process. The Company will continue its ongoing discussions with potential corporate, strategic and financial partners.

  • The BAPE (Bureau d’audiences publiques sur l’environnement) report was made public after the Company prepared and delivered an environmental impact study which was deemed having been completed by the Ministère du Développement durable, Environnement et Lutte contre les changements climatiques (MDDELCC).
  • On February 18, 2015, the BAPE held a public information session to present the project.
  • It was followed, from April 27 to April 29, 2015, by a question period for citizens from the community.
  • Briefs were then submitted to the BAPE and have been presented in majority in the brief presentation period that was held from May 26 to May 28, 2015.
  • On October 26, 2015, the Company announced that the independent report released by the Bureau d’audiences publiques sur l’environnement (BAPE) for the Lac à Paul project in Quebec, Saguenay-Lac-Saint-Jean was favourable.

 

Respected the deadlines for the port facilities project carried out by Port of Saguenay. The Environmental studies are underway for the Canadian Environmental Assessment Agency CEAA.

  • This significant stage in the project’s development will allow Port de Saguenay to obtain the necessary government approvals in order to begin the construction of the port facilities and then obtain the permits requested.

 

Announced cost savings of 13% from the original Feasibility Study in its cost-reduction program. The anticipated cost is now of $US79 per tonne at an exchange rate of 0.95. This reduction is the result of an optimized mining plan to include additional resources it had proved up, as well as savings associated with a more streamlined metallurgical process.

 

Identified new measured and indicated resources on the Paul Eastern Extension in a new 43-101 mineral resource estimate (M+I) on the Paul zone .These results bring the Society closer to its goal of demonstrating that the mine will have a 50 year lifespan.  

Cautionary Statements: The 50 years target is conceptual in nature, that there has been insufficient exploration to define an indicated and measured mineral resources of that size and that it is uncertain if further exploration will result in the target being delineated as an indicated and measured mineral resource. The target is based on 472 Mt in reserve and other resources on the project (released 24 October 2013) and other resources and potential targets (released May 15th, June 12th and October 14th 2014).

  Cautionary Statements: Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

  • Arianne’s updated resource estimate now shows a 5% increase in measured and indicated resources (702.7 million tonnes vs. 668.7 million tonnes) over its previously announced resource estimate released on October 14, 2014.

 

Announced that it has successfully completed a customer trial program that produced a phosphate concentrate with a superior grade and lower contaminants than previously ever achieved by the company.

  • The customer trial produced 1.2 tonnes of phosphate concentrate with a grade of 40.0% of P205 and 0.03% of contaminants. The results surpass previous metallurgical tests work that had produced a P205 concentrate of 38.8% with 0.089% of contaminants. This phosphate concentrate is called Arianne 40.

 

Signed a Cooperation Agreement for the Lac à Paul Mining project along with the First Nations Innu from Pessamit, Essipit and Mashteuiatsh. This agreement better positions Arianne to grow, for the betterment of all of our stakeholders including those in the Innu communities.

  • With the signing of the Cooperation Agreement completed, the parties will be looking to finalize the specifics to be included in the Impact and Benefit Agreements (IBAs) before the project construction begins.

 

Benefited of the deferral of approximately $600,000 in interest payable to the Lender until maturity of the credit lines on December 31, 2015, to Mercury Financing Corp. (the “Lender”).

  • In March 2015, the Company then issued 400,000 non-transferable common share purchase warrants (“Warrants”) The Warrants were issued in relation to an agreement with the Lender to defer interest payments on the credit lines (the “Agreement”). Each Warrant entitles the Lender to purchase one common share of the Company at an exercise price of $0.74. The Warrants shall be exercisable for a period of one year from the date of the signature of the Agreement. The warrants are subject to a hold period of four months.

 

Closed an $18,750,000 expanded credit facility in October 2015 with the current lender and also amended the terms.

  • The new facility will be used to replace its current facility of $12,500,000 (plus any accrued interest). The new facility is set to mature on December 31, 2017, and will bear interest at an annual rate equal to 6.25% with all interest capitalized through the maturity date of the Credit Facility. The Company will issue the lender 7,500,000 warrants, of which 5,000,000 warrants have an exercise price of $0.86 per share and 2,500,000 warrants with an exercise price of $1.08 per share. All warrants are exercisable through December 31, 2017. All securities issued of Credit Facility are subject to a regulatory hold period of four (4) months and one (1) day expiring on February 21, 2016. In connection with this transaction, the Company will pay on closing an arrangement fee of $46,123 to the agent and a commitment fee of $91,338 to the lender.

 

 

 

Documents

Corporate Presentation
Published on December 22, 2015

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