SAGUENAY, QC, July 31, 2014 - Arianne Phosphate Inc. (the “Company” or “Arianne”) (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate company advancing the Lac à Paul Phosphate Project in Quebec’s Saguenay region, today announced that it has closed the first tranche of a private placement financing for gross proceeds of $5,631,000 and for which a vast majority of subscribers are existing shareholders of Arianne. As well, directors and officers of the Company subscribed to the Offering for aggregate gross proceeds of $186,000. Of the $5,631,000 raised, $500,000 will be held in escrow pending the filing of certain documents requested by the TSX Venture Exchange (the “Exchange”). A second tranche for up to $2.369M is expected to close in the next few weeks, for total gross proceeds of up to $8M (the “Offering”).
“Today’s financing announcement is encouraging on a number of levels,” said Brian Kenny, CEO of Arianne. “First, it demonstrates continued support from both our leadership team and existing shareholders to the development of our world-class Lac à Paul Project. It also provides us with the necessary capital to continue timely project advancement, including activities essential to securing the environmental permit and further project optimization.”
Under the terms of the Offering, the Company issued 5,631,000 units (the “Units”) at a price of $1.00 per Unit. Each Unit is comprised of one common share (a “Common Share”) and one half of one common share purchase warrant (each whole warrant being a “Warrant”). Each Warrant entitles its holder to purchase one common share at a price of$1.25 per share until July 31, 2016 (being 24 months following the closing date). If at any time after four (4) months and one (1) day following the closing date, the trading price of the Common Shares on the Exchange is equal to or exceeds $1.75 for a period of twenty (20) consecutive trading days, as evidenced by the price at the close of market, the Company shall be entitled to notify the holders of Warrants of its intention to force the exercise of the Warrants. Upon receipt of such notice, the holders of the Warrants shall have 30 days to exercise the Warrants, failing which the Warrants will automatically expire.
In connection with the Offering, the Company paid Windermere Capital (Canada) Inc. (“Windermere”), acting as agent for the private placement, a commission of $422,325 and issued to Windermere 422,235 non-transferable warrants (the “Agents Warrants”). Each Agent Warrant entitles Windermere to purchase one common share of the Company at a price of $1.00 per share until July 31, 2016. The appointment of Windermere as agent and the terms ofWindermere’s compensation under the Offering were approved by all of the independent directors of Arianne.
All securities issued in connection with the Offering are subject to a regulatory hold period of four (4) months and one (1) day expiring on December 1st, 2014. The Offering is subject to the final approval of the Exchange.
Proceeds from the private placement will be used towards further development of the Lac à Paul Project and general working capital purposes.
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. The Company has 92,868,755 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.
Forward Looking Statements and 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”). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. 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. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.