SAGUENAY, QUEBEC — (Marketwired) — 08/29/13 — Arianne Phosphate (the „Company“ or „Arianne“) (TSX VENTURE: DAN)(FRANKFURT: JE9N)(OTCBB: DRRSF) today filed its financial statements for the second quarter of 2013.
During the second quarter and through August, 2013, Arianne made significant progress on the Feasibility Study (FS) of the Lac a Paul phosphate project, financing and in other key areas:
Mr. Brian Kenny, Chief Executive Officer of the Company commented: „Arianne continued to make significant progress in a number of key areas in the development of our world-class Lac a Paul phosphate deposit. The Feasibility Study is entering the final stages and we completed a key milestone in filing the EIA“. In regards to the $7.6 million July financing, Mr. Kenny stated: „This transaction was completed in difficult market conditions and with the support of existing lenders and shareholders. It is a significant step forward for Arianne and allows us to gear up for the permitting process and undertakes other key activities that move the project forward.“
Key milestones to come in 2013 include the following:
Financial Summary
Second Quarter, FY 2013
The net loss for the three month period ended June 30, 2013 was $1,508,003 compared to a net loss of $756,117 for the same period in 2012.
This increased loss in the second quarter 2013 is mainly due to the impact of deferred taxes of $433,204. This amount comes from 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 of $433,204 and a corresponding deferred tax expense.
The increased loss is also due to higher administrative costs of $298,396 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 $87,275 ($316,488 in 2012) in share-based compensation expense and represents the value of share purchase options granted but not vested.
Year to date, FY 2013
The net loss for the six month period ended June 30, 2013 was $3,677,701 compared to a net loss of $1,087,748 for the same period in 2012. This increased loss is mainly due to the impact of deferred taxes of $1,701,781. This amount comes from 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 of $1,701,781 and a corresponding deferred tax expense.
The increased loss is also due to higher administrative costs of $732,369 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 six months also includes $143,891 ($319,053 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 $ 46,549 during the second quarter of 2013 as compared with an increase of $117,968 for the same period in 2012.
Liquidity
The Company ended the second quarter with cash of $1.1 million and mining tax credit receivables of $3.2 million. Based on current spending estimates for the FS, post FS activities including gearing up for the permitting process 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 June 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 should produce a high quality igneous apatite concentrate grading 39% P2O5 with little or no contaminant. The Company has 79 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: Jean-Philippe Cote 514-754-9407
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