Arianne Phosphate (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 second tranche of its previously announced $8M private placement financing (the “Offering”) for gross proceeds of $2,369,000. As previously announced by the Company, the Quebec government is participating, investing $2,000,000 through Ressources Québec, a subsidiary of Investissement Québec (see our press release dated September 15, 2014 for more details). On July 31, 2014, the Company closed a first tranche of the Offering for gross proceeds of $5,631,000(see our press release dated July 31, 2014 for more details).
“We are pleased to have the government as an investor in our Company,” said Jean-Sebastien David, Chief Operating Officer of Arianne. “This investment will allow us to continue towards the development of our world-class asset.”
According to Raymond Chabot Grant Thornton’s analysis (refer to the press release dated February 25, 2014), Arianne’s Lac à Paul project is set to be the most significant development in the province. Already shown to be one of the largest greenfield phosphate projects in the world, independent studies anticipate that Lac à Paul will provide over$12.5B in economic benefit to the region during the first 25 years of operation. The project will create over 2,200 jobs during the construction phase, 1,000 direct and indirect jobs during operation and provide $1B in employment income to the region over this period.
At the second closing of the Offering, the Company issued 2,369,000 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 October 15, 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 Warrant 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 second closing of the Offering, the Company paid commissions of $75,425 of which $25,425was paid to Windermere Capital (Canada) Inc. (“Windermere”), which acted as an agent for the private placement. Furthermore, the Company issued 25,425 non-transferable warrants (the “Agent’s Warrants”) to Windermere. Each Agent Warrant entitles to purchase one common share of the Company at a price of $1.00 per share until October 15, 2016. All securities issued in connection with the second closing of the Offering are subject to a regulatory hold period of four (4) months and one (1) day expiring on February 16, 2014.
Proceeds from the private placement will be used towards further development of the Lac à Paul Project and general working capital purposes.
Grant of Stock Options
Arianne also announced the granting of 850, 000 stock options to Directors, Officers and employees of the Company pursuant to its stock option plan and subject to regulatory approval. The stock options are exercisable for a term of 10 years at an exercise price of $1.00 per share.
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 92,956,755 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.