Arianne Phosphate (DAN-V) Sept 15, '14 the Quebec government is investing $2-million in Arianne Phosphate Inc.'s Lac a Paul phosphate project in Quebec's Saguenay region. This investment, to be made by Investissement Quebec, is part of Arianne's previously announced $8-million financing (see the company's press release dated July 31, 2014) and will close in conjunction with the closing of the second tranche of the financing in the coming days.
"This is a world-class project with enormous benefits to all involved," said Pierre Fitzgibbon, chairman of Arianne. "By making this investment, the government of Quebec is helping to pave the way forward for this important project. This concrete show of support will allow the strengthening of the region's economy, pioneer a new, long-lasting industry for Quebec and, of course, provides the province the economic benefit of being a shareholder in this $1.9-billion [net present value] asset. The jobs and benefits to the community are that much closer."
Arianne's Lac a Paul project is set to be the most significant development in the province. Already shown to be the largest greenfield phosphate project in the world, independent studies anticipate that Lac a Paul will provide over $12.5-billion in economic benefit to the region during the first 25 years of operation. The project will create over 2,200 jobs during the construction phase, and 1,000 direct and indirect jobs during operation, and provide $1-billion in employment income to the region over this period.
"We are very pleased that the government has chosen to support this project and believe that they will be an exceptional partner, as we go forward through permitting and ultimately development," commented Jean-Sebastien David, the company's chief operating officer. "Certainly, this is a big project, and it will require the support of all those involved. By having the government there, I think it shows the commitment of the province to doing all they can do to help see Lac a Paul be developed. Their investment will enable our team to continue to focus their efforts and energy on the ultimate success of our project. This investment also adds to the string of recent favourable corporate events over the last few months: positive drill results, favourable cost reductions and strong management additions."
Under the terms of the offering, units of the company were offered at a price of $1.00 per unit. Units of the company consist of one common share and one-half common share purchase warrant. Each full warrant entitles its holder to purchase one common share at a price equal to $1.25 for a period of 24 months following the closing date. If at any time after four months and one day following the closing date, the trading price of the common shares on the TSX Venture Exchange is equal to or exceeds $1.75 for 20 consecutive trading days, as evidenced by the price at the close of market, the company shall be entitled to notify the holders of warrants of its intention to force the exercise of the warrants. Upon receipt of such notice, the holders of the warrants shall have 30 days to exercise the warrants, failing which the warrants will automatically expire. |
