Name of the Project
Lac à Paul purified phosphoric acid (PPA) plant.

Location
The Saguenay-Lac-Saint-Jean region, located in Quebec, Canada.

Project Owner/s
Arianne Phosphate.

Project Description
The project includes the construction and operation of a downstream PPA plant. 

The facility will convert regionally produced phosphate concentrate into PPA.  Two proposed grades of phosphoric acid will be produced at the facility – a very high-purity PPA known as “white acid”, used in the production of lithium-iron-phosphate batteries and direct food additives, and a Tier 2 phosphoric acid, used in the production of specialty fertilisers and animal feeds.  

The facility aims to produce 350 000 t/y of high-purity PPA and 220 000 t/y of the Tier 2 phosphoric acid, making it a substantial Western producer of battery- and food-grade PPA.  

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $4.51-billion and an internal rate of return of 32.8%, with a payback of 3.03 years.

Capital Expenditure
The full downstream operation is projected to have an initial capital expenditure of about $1.65-billion.

This covers the logistics for a phosphate concentrate transportation system on the south shore of the Saguenay river, an on-site sulphur plant for the production of sulphuric acid, and a merchant-grade acid and purified phosphoric acid plant.

Planned Start/End Date
Not stated.

Latest Developments
Arianne Phosphate has received C$3.8-million in financing through an unsecured convertible debenture from an unnamed strategic investor.

The proceeds received will be used to advance the company's work on the Lac à Paul project, specifically on the downstream facility.

Under the terms of the investment, the strategic investor has acquired a convertible debenture in the principal amount of C$3.8-million that matures in three years and bears interest at 9.5% a year. Interest payments are added to the principal amount of the convertible debenture; consequently, no amounts are required to be repaid by Arianne until the maturity of the instrument. 

The investor has the option to convert the principal amount of the convertible debenture at C$0.35 a share, and the accrued interest thereon at a price per share equal to the greater of C$0.35 and the market price at the time of the conversion of the accrued interest.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Arianne Phosphate, tel +1 418 549 7316, fax +1 418 549 5750 or email info@arianne-inc.com.