DAN - With 2023 In The Bag How Arianne Phosphate Is Positioning Itself For Growth As LFP Demand Is Expected To Take Off
(NewsDirect)
By Meg Flippin, Benzinga
The lithium-ion batterymarket seems to be heating up, thrusting phosphate into the spotlightas companies turn to LFPs to power the cars and homes of the future.One company that could potentially benefit from the trend is Arianne Phosphate Inc. (OTCMKTS: DRRSF), the Quebec owner ofthe world’s largest greenfield phosphate rock project.
Arianne reports that it had a very strongyear. The company shares that it has hit multiple milestones in 2023that position it to handle what is expected to be an influx of demanddriven by electric vehicles and battery storage systems.
EVBattery Production Shifts Focus
For years, North American EV makers relied onlithium-ion batteries made of lithium, cobalt and nickel to power agreener tomorrow. But cobalt and nickel are scarce and expensive .Companies looking for an alternative have turned to LFPs. Thesebatteries are highly stable, longer lasting and more resistant to heatdegradation. They also require less lithium.
“The demand coming with LFPs is really going to be a big gamechanger,” particularly for purified phosphoric acid, said BrianOstroff, President of Arianne . “This isn't 2%, 6% or 8% growth over the nextfew years, it is 100% growth. New supply is going to have to be builtout.”
Arianne’s Projects Ready For Influx Of Demand
That’s goodnews for Arianne Phosphate since its Lac àPaul project in Quebec consists of several mineralized zonesthat will produce high-quality phosphate concentrate with little or nocontaminants. To accelerate the development of the project, thecompany soldroyalties covering 25 claims in the James Bay area to Lithium Royalty Corp. for $2.35 million.
Arianne’s decision toshore up capital in a non-dilutive fashion during 2023 seems like astrategic move to position it better for the future. In March, aftergoing through the arduous and costly process to qualify its materialfor use in LFPs, it received the detailedreport on tests confirming the use of the company’s high-purityphosphate concentrate in the production oflithium-iron-phosphate batteries. With that seal of approval, it willbe able to sell its mine to companies and inventors. “The industryis starting to recognize the importance of sourcing all criticalminerals required in the production of batteries, not just lithium,”Ostroff said at the time. “I believe it is just a matter of timebefore we see a rush into phosphate similar to what we have seen inother critical materials.”
Ostroffthinks the company is in a good position because its Lac à Paulproject is fully permitted, shovel-ready and in a jurisdiction thatstands to benefit greatly from various government initiatives tosecure critical materials from a safe, secure region. “The worldwill certainly require more phosphate, Arianne is first-up to be ableto provide for this growth,” he said.
Preparing For Growth
To prepare,Arianne Phosphate has been streamlining the business and building namerecognition. Early in 2023, Arianne announced the appointment of veteranmining players to its board and executive team including MarcoGagnon as Chairman. Gagnon is a professional geologist with 30 yearsof management experience within the Canadian mining industry in a widerange of commodities from project exploration to mine production.Arianne also named Dr. Raef Sully to the board. Sully most recentlyserved as Executive Vice President of Nutrien Ltd. and was CEO oftheir Phosphate and Nitrogen divisions.
The company has also been selling its story to investors,companies and politicians, taking part in several forums, trade eventsand investor conferences including the Canadian Critical MineralsOpportunities Forum in New York, The Trade Mission and a LythamPartners hosted battery materials panel at their recent investorconference.
Fertilizer Too
And it's not just the EV market that’s poisedfor growth. The company’s high-purity phosphate concentrate isexpected to see demand from companies producing fertilizer that isgreener, as well. This past fall Arianne and its joint researchproject with the CEGEP of Riviere-de-Loup’s Environmental andBiotechnology Group receiveda three-year grant of $727, 500 from the Natural Sciences andEngineering Research Council of Canada new breed of fertilizers.Today, most fertilizers (MAP & DAP) are produced by taking minedphosphate concentrate and combining it with sulphuric acid and otheringredients. The work being done by GREB would alter the traditionalprocess of making fertilizer, removing the requirement of acid, andallow for the use of organic wastes that otherwise often wind up inlandfills.
From EVs to fertilizer,demand for phosphate is on the cusp of booming. During the past year,Arianne Phosphate has made moves it’s betting will position it forstrong growth in the New Year.
ARIANNE PHOSPHATE INC. ( www.arianne-inc.com )owns the Lac à Paul phosphate deposit in Quebec, Canada. Fullypermitted and shovel ready, the asset is among the worldâ??slargest greenfield deposits, capable of producing an environmentallyfriendly phosphate concentrate. Due to the nature of its high-purity,low-contaminant product, Arianneâ??s phosphate can be used toproduce fertilizer as well as meeting the technical requirements ofspecialty applications such as the lithium-iron-phosphate (LFP)battery. The Lac à Paul deposit is rare due to its geographiclocation and geological structure. Arianne Phosphate is listed on boththe TSX-V: DAN and the OTCQX: DRRSF .
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This information contains forward lookingstatements. All statements, other than statements of historical fact,included herein, including without limitation, statements regardingpotential mineralisation and reserves, exploration results and futureplans and objectives of Arianne Phosphate Inc, are forward-lookingstatements that involve various risks and uncertainties. There can beno assurance that such statements will prove to be accurate and actualresults and future events could differ materially from thoseanticipated in such statements. Important factors that could causeactual results to differ materially from Arianne Phosphate Incâ??s(â??Arianne Phosphateâ? or the â??Companyâ?)expectations are disclosed under the heading "Risk Factors"and elsewhere in Arianne Phosphate Incâ??s documents filed fromtime-to-time with the TSX Venture and other regulatoryauthorities.
Contact Details
Brian Ostroff,President
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