Arianne Phosphate (TSX-V: DAN) (OTC: 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 announce the extension of its secured credit facilities held with Mercury Financing Corp. The extended secured credit facilities are in the aggregate amount of $22,720,810.52 and will have a maturity of June 30, 2020. These credit facilities will continue to bear interest at an annual rate of 15%, with all interest capitalized through maturity. The Company has also issued Mercury 22,417,458 non-transferable warrants with an exercise price of $0.425 per share. The warrants are exercisable through June 30, 2020. As required under the policies of the TSX Venture Exchange, 17,338,739 non-transferable warrants originally issued to Mercury have been cancelled as a result of the new extension.
Arianne has also closed on an unsecured loan in the aggregate amount of $1.5 million with third party lenders. This loan will bear interest at a rate of 12% per annum and mature on December 19, 2019. In conjunction with the loan, Arianne issued the lenders 2,117,646 non-transferable warrants at an exercise price of $0.425 per share, exercisable until December 19, 2019.
The warrants issued in connection with the credit facilities extension and the loan are subject to a hold period of 4 months and 1 day expiring on April 20, 2019.
“The extension of our credit facility removes a distraction for our Company and allows us to continue to focus on the task of advancing our project into development,” said Brian Ostroff, CEO of Arianne Phosphate. “For the year, Arianne has continued to advance the project with many milestones hit. The signing of two offtake agreements, the Port of Saguenay’s receipt of its permit for a maritime facility and, continued government and stakeholder support, I believe has us on a strong footing going into 2019 as we look to complete the financing for our Lac à Paul project.”
Jean-Sébastien David, P.Geo., Qualified Person by NI 43-101, has approved this release. Mr. David is also the Company’s Chief Operating Officer.
About Arianne Phosphate
Arianne Phosphate 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 released in 2013). The Company has 105,803,943 million shares outstanding.
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