SAGUENAY, QUEBEC — (Marketwired) — 04/23/13 — Arianne Phosphate (the „Company“ or „Arianne“) (TSX VENTURE: DAN)(FRANKFURT: JE9N)(OTCBB: DRRSF) filed today its financial statements for the year ended 2012.
During the fourth quarter and early part of Q1 2013, Arianne made significant progress on the Feasibility Study („FS“) of the Lac a Paul phosphate project, including:
Mr. Bernard Lapointe, Chief Executive Officer of the Company commented: „Arianne made significant progress on its Feasibility Study in the fourth quarter of 2012 and is on track to release a comprehensive and robust analysis of the Paul deposit in September 2013 that validates the attractive metallurgical results seen to date and proves up the substantial phosphate reserves that exist on the Paul property.“
Key milestones upcoming in 2013 include the following:
Financial Summary
The net loss for the three-month period ended December 31, 2012 was $2,729,669 compared to a net loss of $2,823,930 for the same period in 2011. The lower loss is primarily due to lower expenses for stock based compensation in 2012 partially offset by the write-off of the 100% owned non-phosphate properties and increased costs related to the Lac a Paul FS.
During Q4 FY2012, the Company announced it would seek to sell off its non-core phosphate properties that had not already been joint ventured. These assets include Heva, La Dauversiere R-14, Moly-Hill, Black Dog, Chico, Dulain and Terres Rares. As part the year end audit, the Company reviewed the fair value of these assets and determined that these properties should be fully written off. This write-off totaled $2,059,680.
In addition, the Company spent in the last quarter $1,574,000 on the Lac a Paul FS in a variety of areas including metallurgical tests, technical reports, mine planning and drilling. The net loss for the quarter includes share based compensation expense of $4,250 (compared to $503,050 in 2011), and represents the value of share purchase options vested during the period.
The net loss for the twelve month period ended December 31, 2012 was $5,402,587 compared to a net loss of $3,438,693 for the same period in 2011 and is due to higher spending on the FS and the write-off of the non-phosphate assets partially offset by lower expense for share based compensation. For the twelve months ended December 31, 2012, the Company spent $4,143,206 on the FS. As noted, the write-off in 2012 was $2,059,680.
The net loss for the 2012 year includes share based compensation expense of $1,565,883 (compared to $3,417,971 in 2011) which represents the value of share purchase options vested during the period. In 2012, 1,777,500 options were vested versus 3,795,000 options vested in 2011.
The Company ended 2012 with cash of $5,225,976 access to undrawn credit lines of $4,600,000 and mining tax credit receivable of $2,502,426. Based on current spending estimates for the FS and future project development, Arianne anticipates it will need additional financing before the end of 2013. The Company expects it will be able to raise the required amount of funds at competitive rates.
The Company-s financial statements and accompanying management-s discussion and analysis for the year ended December 31, 2012 are available on the Company-s website and on SEDAR at . Arianne-s annual information form for FY2012 will be filed before the end of May. Unless otherwise noted, all figures in the news release are reported in Canadian dollars.
About Arianne Phosphate
Arianne Phosphate () is developing the Lac a Paul phosphate-titanium deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits should produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminant. The Company has 76 million shares outstanding.
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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.
Contacts: Source: Bernard Lapointe, CEO (418) 549-7316
Info: Jim Cowley, President (801) 599-3789
Media: Jean-Philippe Cote (514) 754-9407
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