08:49 AM EDT, 04/03/2024 (MT Newswires) -- Arianne Phosphate Inc. ( DRRSF ) said overnight Tuesday that it has elected to issue 6,080,939 shares priced at $0.3229 per share, in lieu of cash, as its annual interest payment to Mercury Financing Corp. as at, March 31, 2024.

Arianne said that under an agreement with Mercury, it has an option to pay the interest by way of cash or shares and, such cash amount would have been equal to about $2.0 million.

The company added that it was able to negotiate a cap in the amount it can pay in order to repurchase an additional royalty that was put in place in March 2021 when its credit facility with Mercury was extended for five years and lowered the annual interest rate to 8%.

Arianne is developing the Lac a Paul phosphate deposits in Quebec.