SAGUENAY, QC, Dec. 13, 2018 /CNW Telbec/ – Arianne Phosphate (the “Company” or “Arianne”) (TSXV: DAN) (OTC: DRRSF) (FRANKFURT: JE9N), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, is pleased to announce that it has entered into its second formal offtake agreement for the purchase and marketing of its high-purity phosphate concentrate.
The buyer of the Arianne Phosphate concentrate is an industry leading global trader of fertilizer products, including phosphate concentrate and phosphoric acid. Under the terms of the agreement, the buyer has a commitment to purchase a specific annual quantity of phosphate concentrate and, has been granted an option to purchase additional amounts under certain terms and conditions.
“This agreement is yet another validation of Arianne’s Lac à Paul project,” said Brian Ostroff, CEO of Arianne Phosphate. “By entering into this relationship, Arianne’s product will now have an even greater global reach by leveraging on the operations and relationships of a long-established, well respected international fertilizer traders. As well, by entering into this agreement, it allows us to expand our potential customer base beyond our focus on the larger multinational buyers by gaining access to many regional buyers through the trader’s current ongoing relationships.”
Similar to Arianne’s first announced offtake agreement (see press release dated September 25, 2018), this agreement’s pricing mechanism is based off of floating benchmark prices plus a premium that accounts for the Company’s high-purity phosphate content. Aside from these two completed offtake agreements, Arianne continues to work closely with other potential phosphate buyers to conclude similar agreements, the completion of which are a significant component to finalizing project financing.