Arianne Phosphate (TSX-V: DAN) (OTC: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining company, advancing its Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region is pleased to announce that it has closed on a $1.5 Million financing. Subscribers to this financing were predominantly institutional and included Funds that have been long-time investors in Arianne. Additionally, the Government of Quebec added 3,333,333 units to its holdings in the Company by way of investment in this placement through Investissement Quebec.
“Recent events surrounding the Covid-19 virus with resulting disruptions to the food-chain, as well as the heightened tensions around security of supply, continue to demonstrate the importance of our Lac a Paul phosphate project,” said Brian Ostroff, CEO of Arianne Phosphate. “We welcome the support of our investors as we continue to move the project towards development to the betterment of all stakeholders and investors. Further, the ongoing support of the Quebec Government is an important piece as we all work together to unlock the significant social and economic benefits to the region.”
Under the terms of the financing, Arianne Phosphate has issued 9,999,998 units at a price of $0.15 per unit, with each unit consisting of one common share and a half warrant. A full warrant, issued as part of this financing, is exercisable at a price of $0.20 until June 10, 2023. The securities issued in connection with the financing are subject to a regulatory hold period of four (4) months and one (1) day expiring on October 11, 2020. The financing remains subject to the final approval of the Exchange.
Directors and officers of the Company participated in the Offering and subscribed for an aggregate of 333,332 Units representing an aggregate amount of $50,000. Participation of insiders of the Company in the Offering constitutes a “related party transaction” as defined under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”). The Offering is exempt from the formal valuation and minority shareholder approval requirements of Regulation 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company’s market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. persons,” as such term is defined in Regulation S promulgated under the U.S. Securities Act, absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 123,198,348 shares outstanding.
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We acknowledge the [financial] support of the Government of Canada.