Mr. Jean-Sebastien David reports
ARIANNE PHOSPHATE CONCLUDES ON A FORMAL OFFTAKE AGREEMENT
Arianne Phosphate Inc. has formally executed its first offtake agreement. Under the terms of the agreement, the buyer has entered into a long-term contract to purchase Arianne's high-purity phosphate concentrate which will be shipped to the buyer's processing plant for further processing into downstream phosphate products. The offtake agreement also has a mechanism whereby it can be extended beyond the initial contract period and applies pricing that accounts for the high quality of Arianne's concentrate.
"After a lot of hard work, this agreement represents a major milestone for our company," said Brian Ostroff, Arianne Phosphate's chief executive officer. "Comprising part of our annual output, this agreement accomplishes many objectives. First, receiving an offtake from a well-known, bankable, industry player validates our product and confirms the marketability of it. Further, this agreement also confirms a pricing model that accounts for Arianne's high-purity, low-contaminant concentrate.Lastly, we also now have a template on how to move from MoU to formal agreement and, what it takes to get there."
Arianne currently has several other MoUs in place and is working toward turning them into formal purchase agreements. The completion of these contracts is a necessary component to formalize the company's project financing and has become central to the Arianne's continuing efforts to move its Lac a Paul project into development.
About Arianne Phosphate Inc.
Arianne Phosphate is developing the Lac a Paul phosphate deposits located approximately 200 kilometres north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high-quality igneous apatite concentrate grading 39 per cent phosphorus pentoxide with little or no contaminants (feasibility study released in 2013).
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