Dundee Capital Markets Initiates Coverage on Arianne Resources (TSXV:DAN) (OTCBB:DRRSF) with a Speculative Buy Recommendation - Video Summary on www.investmentpitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, March 18, 2013 - Dundee Capital Markets has
initiated coverage on Arianne Resources (TSXV:DAN) (OTCBB:DRRSF). Analyst
Carolyn Dennis gives the company a speculative buy rating and a $1.90 price
target, a 52% premium to the $1.25 price at the time the report was issued.
InvestmentPitch.com has produced a "video news alert" which provides a brief
overview of Arianne Resources based on the research report. If this link is not
enabled, please visit www.InvestmentPitch.com and enter "Arianne" in the search
box.
Arianne, a junior mining company, is developing their principal asset, the Lac à
Paul Phosphate Project, an area of more the 25,000 hectares or 250 square
kilometres, in Quebec, Canada.
Phosphate rock is an essential component of fertilizer, with approximately 87%
of the worldwide production of phosphates used in the production of fertilizers.
There is no substitute for phosphates in fertilizers.
The deposit consists of a rare apatite-bearing anorthosite. Initial tests
indicate the ability to produce a 39% phophorus penta oxide (P2O5) concentrate
with recoveries of 85% to 90% and low levels of heavy metals. Dundee therefore
believes Arianne's concentrate should command a premium price.
Arianne recently announced the expansion of the main Paul Zone to a Measured &
Indicated resource of 590.2 million tonnes (at) 7.13%. P2O5. This is significant as
it should allow for a 25 year mine life from one pit. The company anticipates
production of approximately 3 million tonnes per year, starting in 2017.
Dennis stated, "We believe increasing demand for food and therefore fertilizer,
combined with the depletion of existing mines, declining rock quality globally,
shift in focus to downstream processing and a lack of a substitute, support the
need to develop new phosphate rock deposits. Arianne should benefit from
existing infrastructure and is approximately 300 kilometres by road to the
Sagueney Port, allowing access to international markets, notably Europe."
Europe has stringent impurity requirements on fertilizer, notably Cadmium
levels.
Dundee cautions that Arianne may face risks including the need to raise
additional capital, as well as marketing, distribution and pricing risks.
The company will be seeking shareholder approval to change its name to Arianne
Phosphate at its AGM in May. It also announced its intention to divest all non-
phosphate exploration properties in order to focus exclusively on becoming a
leading Canadian Phosphate producer.
Arianne Resources currently trades at $1.20, and with 76 million shares
outstanding, is capitalized at $91 million.
For more information please visit the company's website www.arianne-inc.com, or
call Bernard Lapointe, the company's CEO at 418-549-7316 or by email at
Bernard(at)arianne-inc.com.
For more information about Dundee or to obtain a copy of their research report,
contact your nearest Dundee office. Their branches are listed on their website
at www.dundeecapitalmarkets.com.
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Datum: 18.03.2013 - 16:59 Uhr
Sprache: Deutsch
News-ID 240472
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