SAGUENAY, QUEBEC — (Marketwired) — 11/26/13 — Arianne Phosphate (the „Company“ or „Arianne“) (TSX VENTURE: DAN), (FRANKFURT: JE9N), (OTCBB: DRRSF) today filed its financial statements for the third quarter of 2013.
During the third quarter and through November, 2013, Arianne made significant progress on the Lac a Paul Phosphate Rock Project development:
Mr. Brian Kenny, Chief Executive Officer of the Company commented: „With the release of a positive feasibility study on the Lac a Paul Phosphate Rock Project, Arianne has taken a crucial step forward in its development.“ In regards to next steps, Mr. Kenny stated: „We are now able to focus on further improving the value of the Lac a Paul project, proceeding with the permitting process, assuring social acceptability, and undertaking other key activities that move the project forward to the construction phase.
Financial Summary
Third Quarter, FY 2013
The net loss for the three month period ended September 30, 2013 was $1,675,088 compared to a net loss of $1,585,171 for the same period in 2012.
The increased loss in the third quarter 2013 is mainly due to the impact of an increase in deferred taxes of $358,480. This amount is related to the expected manner of recovery of the Company-s prospection and evaluation assets as there are indications that its exploration and evaluation assets could be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability in the quarter of $541,480 and a corresponding deferred tax expense.
The loss is also due to higher administrative costs related to the increased level of activity at the Company as it continues the development of the Lac a Paul project, increased public consultations with local communities, and increased discussions with shareholders and other stakeholders.
During the third quarter, the Company wrote off its Opinaca property for a total of $240,921.
The net loss for the quarter also includes $222,454 ($1,174,143 in 2012) in share-based compensation expense, a decrease of $951,689 versus the prior period, and represents the value of share purchase options granted but not vested.
Nine months year to date, FY 2013
The net loss for the nine month period ended September 30, 2013 was $5,352,791 compared to a net loss of $2,672,918 for the same period in 2012. This increased loss is mainly due to increased deferred taxes of $2,060,261. This amount is related to the expected manner of recovery of its prospection and evaluation assets as current indications are that Arianne-s exploration and evaluation assets could be recovered through use rather than though sale. Accordingly, the Company recorded a deferred income tax liability of $2,243,261 and a corresponding deferred tax expense.
The increased loss is also due to higher administrative costs 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 nine months also includes $366,345 ($1,493,196 in 2012) in share-based compensation expense, a decrease of $1,126,851 versus the prior period, and represents the value of share purchase options granted but not vested.
Liquidity
The Company ended the third quarter with cash of $4.3 million and mining tax credit receivables of $2.5 million in respect of FY2012 and $0.8 million in respect of the nine months ended September 30, 2013. Between October 1, 2013 and November 26, 2013, the Company has received a total of $0.9 million from both the early exercise of warrants (April, 2011 warrants at a price of $1.24 per share) as well as the exercise of options. Before year end, the Company expects to receive a further $880,000 from warrants issued in the September, 2012 financing (1 million warrants at a price of $0.88) as well as further cash from the early exercise of additional warrants in the April, 2011 tranche. Based on current spending estimates for future project development, Arianne anticipates it will need additional financing in 2014.
The Company-s Interim Financial Statements and accompanying management-s discussion and analysis for the quarter ended September 30, 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 news release are reported in Canadian dollars.
About Arianne Phosphate
Arianne Phosphate („Arianne Phosphate Inc.“) () is developing the Lac a 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 38.6% P2O5 with little or no contaminants. The Company has 80.5 million shares outstanding.
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.
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Contacts: Source: Brian Kenny, CEO 514-699-7436
Info: Derek Lindsay, CFO 514-594-2372
Media: Nadege Tollari, VP Corporate Affairs 514-932-8416
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