Facility Now Up to $18.75 Million; Maturity Extended by two years

DAN: TSX-V (Canada)
JE9N: FSE (Germany)
DRRSF: OTC BB (USA)

SAGUENAY, QC, Oct. 8, 2015 /CNW/ - Arianne Phosphate (the "Company" or "Arianne") (TSX VENTURE: DAN) (FRANKFURT: JE9N) (OTCBB: DRRSF), a development-stage phosphate mining company, advancing the Lac à Paul project in Quebec's Saguenay-Lac-Saint-Jean region, has secured an expanded Credit Facility from existing lenders now totaling $18.75 Million.  The increased facility will be used to supplement its current facility of $12.5 Million (plus any accrued interest) that is already in place. As well, the facility which was set to mature on December 31, 2015, has now been extended by two years to December 31, 2017.  The additional amount can be drawn down as required by the Company.

The entire secured credit facility will bear interest at an annual rate equal to 6.25% with all interest capitalized through the end of the facility. Additionally, the Company will issue the lender 7.5 Million warrants, of which 5 Million warrants have an exercise price of $0.86/share and 2.5 Million warrants with an exercise price of $1.08/share. All the warrants are exercisable through December 31, 2017.  In connection with this transaction, Arianne will pay on closing an arrangement fee of $46,123 to the agent and a commitment fee of $92,246 to the lender.

"Securing this credit facility through our current lenders is a strong show of confidence in our efforts and its limited dilution is of real benefit to Arianne and its shareholders," commented Jean-Sebastien David, the Company's COO.  "With this new agreement in place, Arianne has extended by two years any payments, both interest and principal, associated with the facility.  With this now secured, the Company can fully focus on receiving its permit and continue its discussions with various strategic and financial partners without any immediate timing or liquidity constraints."

The transaction is subject to the execution of final documentation customary to this type of transaction and to final regulatory approvals.

About Arianne Phosphate
Arianne Phosphate ("Arianne Phosphate Inc.") (www.arianne-inc.com) is developing the Lac à Paul phosphate deposits located approximately 200 km north of the Saguenay/Lac St. Jean area of Quebec, Canada. These deposits will produce a high quality igneous apatite concentrate grading 39% P₂O₅ with little or no contaminants. The Company has 95,325,755 million shares outstanding. 

⁽¹⁾ Cautionary Statements: Operating cost estimates  have been developed by Arianne utilizing internal and skilled third party resources and are dependent on agreement with government and statutory authorities and vendors which have not all yet been completed. They are therefore not 43-101 compliant at this time.

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.

Follow Arianne on:
Facebook: https://www.facebook.com/ariannephosphate
Twitter: http://twitter.com/arianne_dan
YouTube: http://www.youtube.com/user/ArianneResources
Flickr: http://www.flickr.com/photos/arianneresources
Resource Investing News: http://resourceinvestingnews.com/?s=Arianne

Forward Looking Statements and Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, anticipated effect of the additional metallurgical tests on the Project, and timing and expectations of future work programs. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

SOURCE Arianne Phosphate Inc.