Titanium Corporation Inc. (the
"Company") (TSX VENTURE:TIC - News) today released
financial results for the first quarter ended November 30, 2010. The Company
is at an advanced stage of demonstration piloting new clean technologies
designed to recover valuable products, including bitumen, from oil sands
tailings and reduce negative environmental impacts.
The Company's activities during the
quarter were focused on executing its demonstration pilot project at the
Canadian Government's CanmetENERGY ("Canmet") oil sands test facilities for two oil sands
operators and completing a Private Placement to finance on- going activities
of the Company.
HIGHLIGHTS:
-- On December 15, 2010 the Company announced that it had completed a
brokered Private Placement for aggregate gross proceeds of $14,331,000.
Under the private placement, the Company issued 7,165,500 units at a
price of $2.00 per unit. Each unit consists of one common share of the
Company and one half of one common share purchase warrant. Each whole
warrant entitles the holder to purchase one additional common share at a
price of $2.50 per common share. The warrants expire on June 15, 2012.
-- Technology performance continued to exceed expectations with bitumen and
solvent recoveries at the high end of targets in the range of 75%
recoveries for the two completed oil sands operator's programs. Bitumen
removal processes successfully cleaned valuable heavy minerals for
downstream separation processing.
-- Over 14,000 sample tests have been conducted by Maxxam Analytics during
the demonstration pilot programs. Three months of piloting for the first
oil sands operator were successfully completed in early September and
the second operator at the end of the quarter. Technical reviews are
underway and are progressing very positively.
-- Piloting of a third oil sands operator's tailings commenced in December
2010 and will continue into February, 2011. Test programs to treat
residual tailings to recover water and dry tailings were conducted by
CanmetENERGY's tailings experts with encouraging results.
Scott Nelson, the Company's President and Chief Executive Officer said, "This has been an outstanding quarter for our Company. We have now demonstrated positive results with the tailings of two major oil sands operators. During 2011 we will conclude advanced pilot testing that simulates operating conditions with the remaining major oil sands operators. Further successful results along with a strong treasury bolstered by our recent successful financing positions us to aggressively move forward with commercialization in 2011."
FINANCIAL OVERVIEW
Net loss for the first quarter of fiscal
2011 was $2.8 million compared to $1.7 million for the comparable 2010 fiscal
period. The difference relates to increased research and development costs
associated with operating the integrated demonstration pilot in the current
period which was not operational in the comparative period.
Research & Development - R&D
expenditures before grant recoveries for the quarter ended November 30, 2010
were $2.8 million as compared to $1.3 million for the same period in 2009.
The current quarter expenditures reflect amounts incurred in operating the
integrated demonstration pilot. The Company realized $0.9 million in
government grants for the quarter ended November 30, 2010 as compared to $0.3
million for the same period in 2009.
General & Administrative - G&A
expenses were unchanged at $0.6 million for the first quarter of fiscal 2011
compared to the same period in fiscal 2010.
Cash & Interest income - The
Company's cash position at November 30, 2010 was $5.5 million (including $0.4
million in restricted investments relating to the Alberta Government grant).
This compares to $9.5 million at August 31, 2010 (including $0.4 million in
restricted investments relating to the Alberta Government Grant). The
Company's cash position has been significantly strengthened as result of the
$14.3 million Private Placement completed in December 2009. Interest income
decreased during the quarter and the fiscal year due to lower interest rates on
re-investment of maturing certificates of deposit and lower investment
balances.
To view the Company's Management
Discussion and Analysis and Financial Statements for the quarter ended
November 30, 2010, please visit our website at www.titaniumcorporation.com
or SEDAR at www.sedar.com.
STOCK OPTION GRANT
The Company reports that on January 25,
2011 it granted to Officers and Directors of the Company 1,850,000 incentive
stock options. These incentive stock options will vest based on milestones
related to certain of the Company's objectives associated with
commercialization of its technology. Subject to the vesting of these
incentive stock options, the options are exercisable at $2.00 per share for a
period of five years from the date of grant pursuant to the Company's stock
option plan and in accordance with the policies of the TSX Venture Exchange.
About Titanium Corporation Inc.
Titanium Corporation Inc. is developing
technology to recover heavy minerals and bitumen contained in the waste
tailings streams from oil sands mining operations near Fort McMurray,
Alberta. The potential benefits from this "Creating Value from Waste
(TM)" proposition are twofold. First, the recovered bitumen and minerals
will have intrinsic value and will provide shareholders with a source of
revenue. Second, by using an integrated approach to recovering minerals and
bitumen, there is potential for industry-wide environmental benefit. The
Company's shares trade on the TSX-V under the symbol "TIC". For
more information visit the Company's website at www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Certain statements contained herein
regarding the Company and its plans constitute "forward-looking
statements" within the meaning of Canadian securities laws. By their
nature, forward-looking statements require the Company to make assumptions and
are subject to inherent risks and uncertainties. There is a significant risk
that predictions, forecasts, conclusions, projections, and other
forward-looking statements will not prove to be accurate. We direct you to
our statement of risks and uncertainties more particularly described and
updated in the Company's Management Discussion and Analysis filed for the
period ended November 30, 2010 and for the year ended August 31, 2010 on
SEDAR (www.sedar.com). Most notably these risks include, but are not limited
to risks associated with the advancement of research programs including
operational or technical difficulties in connection with research activities;
development timeline delays and problems, including unforeseen development
costs; reliance on a small number of people, access to and cost of tailings,
competition and intellectual property protection and changes to environmental
laws and regulations.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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