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ARIANNE PHOSPHATE PROVIDES 2024 RECAP AND DISCUSSES PLANS FOR 2025
SAGUENAY, QC, Jan. 8, 2025 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSXV: DAN) (OTCQX: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec's Saguenay-Lac-Saint-Jean region is pleased to provide a review of 2024 and discusses its corporate priorities in 2025.
Phosphate Macro and the LFP
The phosphate macro for 2024 was strong as battery demand continued to grow rapidly in combination with the traditional growth of fertilizer demand. This past year saw the lithium-iron-phosphate ("LFP") battery begin to surpass the NMC battery in many markets as, aside from the battery's dominance in the Chinese EV market, many Western automakers have now also started to adopt the battery technology. Further, the rapid growth in Energy Storage Systems ("ESS") has advanced well beyond original expectations and is adding significant demands on an already tightly supplied phosphoric acid market. These events have come at a time when there is a growing understanding in the West that there is a competitive disadvantage relative to China when it comes to access to the necessary critical materials, production facilities and technological capability. This has resulted in the procurement and production of these batteries becoming a national priority among many Western countries.
The recognition of the growth and importance of the LFP coupled with the fact that today, well over 90% of all LFP batteries are produced in China, led both the Canadian and Quebec governments to add phosphate to their respective critical mineral lists in 2024. This has been a very positive development for Arianne as its Quebec based Lac à Paul project is globally understood to be the preeminent phosphate development in the West. Phosphate's addition to the critical minerals lists has added to the importance and awareness of the project and will allow access to various government programs that provide funding for critical mineral projects.
Phosphoric Acid Facility
Given the growing importance of phosphate, including its use as a battery material, in 2024 Arianne began its formal pursuit of the construction of an operation centered on the production of purified phosphoric acid ("PPA"). To this end, the Company embarked on a prefeasibility study that was completed in the second quarter of 2024 (see press releases dated June 27, 2024 and November 8, 2024). The facility will take advantage of the igneous nature of phosphate in the region; Lac à Paul having the largest known greenfield deposit. Using igneous-based phosphate will allow for the easy conversion of concentrate to PPA at a preferred ratio relative to other operations that use traditional sedimentary based phosphate.
The study affirmed the positive economics surrounding the construction of a PPA plant in the Saguenay region of Quebec, with access to the output from Arianne's Lac à Paul deposit, as well as other early-stage deposits, should they materialize. The facility would have a maximum production capacity of 350,000 tonnes of battery/food grade PPA, as well as 220,000 tonnes of a second-tiered acid used for animal feeds and specialty fertilizers. The facility would be the largest PPA producer outside of China and have an extremely competitive cash-cost profile. As the West looks to access critical materials outside of China, it is believed that this facility would tie into a more secure supply chain.
Strategic Investment
The improving macro for phosphate along with Arianne's corporate achievements throughout the year culminated in the Company receiving a strategic investment from a large, global mining company (see Press Release dated October 17, 2024). This investment continues to recognize the growing interest in phosphate by miners as well as those directly involved in the battery technology, EV and fertilizer industries.
The Year Ahead
Going into 2025, Arianne is looking to build on its successes of 2024 and move its projects, upstream and downstream, forward. As the Company believes that strong partners will be necessary to develop the opportunities, Arianne will continue to work with its strategic investor as well as the numerous other companies that have entered into Confidentiality Agreements and are pursuing their due diligence. The Company is also continuing its dialogue with both the Quebec and Canadian governments to unlock these opportunities that will allow for development. Arianne has been able to leverage high-level introductions that have been made to 'would-be' participants in the project.
Operationally, Arianne will be advancing its work on its proposed downstream facility. The Company has commenced further studies to optimize the ratio of PPA to second-tiered acid. Already recognized as an extremely high ratio (roughly 2:1), Arianne sees the possibility of squeezing additional gains in its production of PPA using its high-quality phosphate concentrate. Any incremental improvements would continue to enhance the profitability profile of the facility and generate additional capacity for companies the require the material for their needs. The Company also believes that there are additional enhancements that can result in lower costs and continues to work with various groups on this.
Investor Awareness
Lastly, given the improvement in the global macro for phosphate and the Company's achievements over the last year, Arianne will look to build a greater awareness of the Company within the investment community and enhance its investor and public relations' programs. Arianne's Lac à Paul deposit currently has the world's largest greenfield resource, has easy access to needed infrastructure, enjoys strong social acceptability and is fully permitted. Additionally, the plan of building a downstream operation has added to the attractiveness of the opportunity and its economic profile. A greater awareness and understanding of the Company and, achieving the milestones set forth, should help to close the significant gap that exists between market value and NPV.
Other Matters
In addition, Arianne today has announced the granting of 570,000 stock options to its senior management and directors. The stock options entitle its holder to purchase one common share of the Company until January 8, 2035 at a price of $0.165; this being the closing price of the Company's shares on the trading day preceding the date of the grant. These options are all subject to respective vesting periods and subject to regulatory approval.
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 ("Feasibility Study to Produce 3Mtpy of High Purity Apatite Concentrate at the Lac a Paul Project, Québec, Canada" released on November 13, 2013). The Company has 202,890,210 shares outstanding.
QualifiedPerson
Raphael Gaudreault, eng., Qualified Person by NI 43-101, has approved the technical disclosure in this release. Mr. Gaudreault is also the Company's Chief Operating Officer.
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.
Cautionary Statements Regarding Forward Looking 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"). Forward-looking information includes, but is not limited to, information relating to the advancement of a downstream phosphoric acid project, the acceleration of the discussions with other parties in connection with the project. 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. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock price; risks related to changes in commodity prices; sources and cost of power facilities; the estimation of initial and sustaining capital requirements; the estimation of labor and operating costs; the general global markets and economic conditions; the risk associated with exploration, development and operations of mineral deposits; the estimation of mineral reserves and resources; the risks associated with uninsurable risks arising during the course of exploration, development and production; risks associated with currency fluctuations; environmental risks; competition faced in securing experienced personnel; access to adequate infrastructure to support mining, processing, development and exploration activities; the risks associated with changes in the mining regulatory regime governing the Company; completion of the environmental assessment process; risks related to regulatory and permitting delays; risks related to potential conflicts of interest; the reliance on key personnel; financing, capitalization and liquidity risks including the risk that the financing necessary to fund continued exploration and development activities at Lac à Paul project may not be available on satisfactory terms, or at all; the risk of potential dilution through the issue of common shares; the risk of litigation. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in commodity prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approval, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
