Arianne Phosphate, a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, reported on March 16 that it has sold royalties covering 25 claims in the James Bay area to Lithium Royalty Corp. for C$2,350,000. The royalty, retained by Arianne as part of an earn-in option agreement first entered into in 2009, provided for a 1.5% NSR on the property. These claims currently constitute part of Allkem Ltd.’s James Bay lithium project.
“After a thorough review, there is no doubt the transaction is win-win for both companies,” said Brian Ostroff, Arianne President. “The purchase by Lithium Royalty Corp. allows them to expand their core business while providing Arianne additional financial resources without any dilution to our shareholders.”
Ostroff noted that the sale follows up on news regarding the confirmation that the company’s high-purity phosphate concentrate can supply the emerging lithium-iron-phosphate (LFP) battery business. He said the transaction significantly increases the company’s cash position and will allow it to accelerate the development of the Lac à Paul deposit.
The confirmation came from tests performed using phosphoric acid samples produced by Prayon Technologies, a division of Prayon SA. In addition to the reports, Arianne also received samples of the purified phosphoric acid made from its phosphate concentrate and produced through the process. Both reports and samples are currently being made available to companies interested in having access to Arianne’s phosphate concentrate or products made from it.
“The industry is starting to recognize the importance of sourcing all critical minerals required in the production of batteries, not just lithium,” said Ostroff. “I believe it is just a matter of time before we see a rush into phosphate similar to what we have seen in other critical materials. Arianne is one of very few companies that have already gone through the process to qualify its material for use in the LFP; a process that takes considerable time and money. Further, the company’s Lac à Paul project is fully permitted, shovel-ready, and in a jurisdiction that stands to benefit greatly from various government initiatives to secure critical materials from a safe, secure region. The world will certainly require more phosphate. Arianne is first-up to be able to provide for this growth.”