SAGUENAY, QUEBEC — (Marketwired) — 05/29/13 — Arianne Phosphate (the „Company“ or „Arianne“) (TSX VENTURE: DAN), (FRANKFURT: JE9N), (OTCBB: DRRSF) today filed its financial statements for the first quarter of 2013.
During the first quarter and early part of Q2 2013, Arianne made significant progress on the Feasibility Study (FS) of the Lac a Paul phosphate project, including:
Mr. Jim Cowley, President of the Company, commented: „Arianne continued to make significant progress on its Feasibility Study in the first quarter of 2013“. In regards to the recently announced pilot scale results, he also noted: „This test confirms column flotation as the optimal processing technology for Paul Zone ore and demonstrates that superior quality concentrate from Paul Zone ore can be produced on a commercial scale. This latest metallurgical test represents another essential milestone for Arianne, thereby confirming both a critical process design element and a product marketing advantage for the Lac a Paul Project.“
The Company will be holding its annual general meeting in Montreal on May 29, 2013, and shareholders are encouraged to attend.
Key milestones to come in 2013 include the following:
Financial Summary
The net loss for the three month period ended March 31, 2012 was $2,169,703 compared to a net loss of $331,630 for the same period in 2012.
This increased loss in the first quarter 2013 is mainly due to the impact of deferred taxes of $1,268,577. This amount comes from the expected manner of recovery of its prospection and evaluation assets as its exploration and evaluation assets will likely be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability of $1,268,577 and a corresponding deferred tax expense.
The increased loss is also due to higher administrative costs of $433,978 related to the increased level of activity at the Company for the development of the Lac a Paul project, increased public consultations with local communities, and increased discussions with shareholders and other stakeholders.
The net loss for the quarter also includes $56,616 ($2,565 in 2012) in share-based compensation expense and represents the value of share purchase options granted but not vested.
In addition, the fair value of marketable securities decreased by $25,502 during the first quarter of 2013 as compared with a gain of $161,739 for the same period in 2012.
The Company ended the first quarter with cash of $4,891,638, access to undrawn credit lines of $600,000 and mining tax credit receivables of $2,975,580. Based on current spending estimates for the Feasibility Study 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 Interim Financial Statements and accompanying management-s discussion and analysis for the quarter ended March 31, 2013 and the year ended December 31, 2012 are available on the Company-s website and on SEDAR at . Unless otherwise noted, all figures in the press release are reported in Canadian dollars.
Arianne Phosphate () is developing the Lac a Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac-Saint-Jean region of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminant. The Company currently has 77 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: Jim Cowley, President 801 599-3789
Info: Derek Lindsay, CFO 514 594-2372
Media: Jean-Philippe Cote 514 754-9407
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