Argex signs LOI for distribution of up to 25,000 tonnes of TiO2 per year
MONTREAL, Oct. 22, 2013 /CNW Telbec/ - Argex Titanium Inc. (TSX: RGX) ("Argex") announced today that it has signed a letter of intent ("LOI") with one of the world's largest chemical distribution companies to distribute up to 25,000 tonnes per year of Argex TiO2 to be produced at Argex's proposed production facility in Salaberry-de-Valleyfield, Quebec.
The intent of this LOI is to act as a guideline for the negotiation of a definitive marketing and off-take agreement between the parties. Argex intends to share more details as to the counter-party and details of the definitive agreements once negotiations are finalized.
"The successful completion of a definitive marketing and off-take agreement of this scale means that now a significant majority of all available TiO2 product from our initial industrial module will already be spoken for well in advance of actual production for many years to come," noted Philippe Guillemaille, Head of Sales and Marketing for Argex.
The initial industrial module will have a capacity of 50,000 tonnes per year of TiO2 pigment production. However, it is expected that additional modules will be added at the current location where they would benefit from capital investment in infrastructure already absorbed by the first module or constructed at other locations, following the successful commissioning of the first industrial module.
The main product will be coated and uncoated TiO2 pigment mainly used for architectural paint, plastic and cosmetics applications. Commercial by-products of significant value will be generated during the processing of the feedstock which consequently minimizes costs associated with waste treatment and disposal.
About Argex Titanium Inc.
ARGEX Titanium Inc. is a near-term producer of Titanium Dioxide (TiO2). With a primary goal of advancing rapidly towards production, Argex has adopted a simple and low-risk strategy for the scale-up of its proprietary process that allows it to produce high-purity pigment-grade TiO2 directly from run-of-mine material. The closed-loop process is environmentally friendly and produces minimal inert tailings.
Argex is pleased to have selected Valleyfield, Quebec as the location for its Research & Development centre and first industrial-sized production facility. The location of the site can be viewed at Argex Valleyfield.
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Argex, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Argex will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Argex's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in Argex's Annual Information Form for the fiscal year ended December 31, 2012, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements. Argex does not intend, nor does Argex undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
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SOURCE Argex Titanium Inc.For further information:
Roy Bonnell, President and Chief Executive Officer
Argex Titanium Inc.
Argex Titanium Inc.
The Howard Group
Sarah Moreau, Consultant, Financial & Regulatory Affairs
514 395-0375, ext.234