ARIANNE PHOSPHATE EXTENDS ITS CREDIT FACILITIES

The most recent news (March 12, 2026) announces an extension of Arianne’s credit facilities with Mercury Financing Corp. totaling $26,328,001. The maturity has been pushed to September 30, 2027. In exchange for this extension, Arianne will issue 10 million common shares and 25 million non-transferable warrants to the lender. Additionally, the lender gains the right to a board nominee and an increased production fee (royalty) of $0.25 per metric ton of phosphate concentrate sold. Accrued interest will continue to be paid in shares at a price of $0.26.

The impact is Routine - Positive. While an extension of a $26M debt facility is critical for a company with only $2.7M in cash (as of Sept 2025), it is "routine" in the context of Arianne’s historical behavior of extending this specific facility and paying interest in shares to preserve capital. - Solvency: It removes the immediate threat of default or a liquidity crunch in 2026, providing an 18-month runway to secure a strategic partner. - Dilution: The cost is heavy. Issuing 10M shares and 25M warrants (plus ongoing interest-in-shares) continues to bloat the share count, which has already grown from ~194M to ~213M in two years. - Cost of Capital: The addition of a $0.25/t production fee increases the long-term operating cost burden, though it is buyable for $4.5M. - Strategic Alignment: The lender’s board nominee suggests tighter oversight as the project nears a potential "go/no-go" decision.

Arianne Phosphate owns the Lac à Paul project in Quebec, described as the world's largest greenfield igneous phosphate deposit. Unlike sedimentary deposits, igneous phosphate is lower in contaminants (heavy metals), making it "ideally suited" for conversion into Purified Phosphoric Acid (PPA). PPA is a critical input for Lithium-Iron-Phosphate (LFP) batteries. The project is fully permitted and "shovel-ready," with over $100M spent on development over 15 years.