Argex signs definitive share purchase agreement to acquire majority interest in Canadian Titanium Limited
- Argex to acquire majority interest in privately-owned CTL
- CTL to grant license to Argex for the recovery of titanium dioxide (TiO2)
MONTREAL, Sept. 28, 2011 /CNW Telbec/ - Argex Mining Inc. (Argex) is pleased to announce that it has entered into a definitive Share Purchase Agreement with the shareholders of privately-owned Canadian Titanium Limited (CTL) to acquire a 50.1% ownership interest in CTL. The consideration for the purchase of 50.1% of the outstanding shares of CTL will consist of payment by Argex to the selling shareholders of $1 million as well as 2 million Argex common shares.
"After extensive bench and miniplant testing, we are satisfied that the process has demonstrated the required level of performance to allow us to acquire a majority interest in CTL immediately," stated Roy Bonnell, President and CEO of Argex.
CTL will grant Argex an exclusive license in the Province of Québec and a non-exclusive license for the rest of the world to use the licensed technology for the recovery of titanium dioxide (TiO2). CTL will provide Argex with all of the know-how and information which is applicable to the licensed technology and products. Argex will pay CTL a 2% royalty on its production of titanium dioxide (TiO2).
"We are very pleased with this acquisition intended to allow Argex to advance towards production with CTL's proprietary technology", said Mr. Bonnell, "The CTL technology will allow Argex to go from mine to high-purity pigment-grade TiO2 in one process. I believe this to be a game-changer in the industry."
"Going forward with CTL and its team, we will continue to re-shape the industry through technological improvements and innovation creating additional revenue streams from the technology," added Mr. Bonnell.
CTL is a private company which owns technology and underlying patents which Argex will use, through the License and Royalty Agreement, to process titanium-bearing ore, thereby creating a high-value product.
The transaction, which has been unanimously approved by the Boards of Directors of Argex and CTL, is subject to regulatory approval, including that of the TSX Venture Exchange, and customary closing conditions. The Argex shares to be issued to the selling shareholders will be subject to a four-month "hold period" under applicable securities legislation and the policies of the TSX Venture Exchange.
About Canadian Titanium Limited
CTL is based in Mississauga, Ontario, Canada, and was incorporated in 2005 by the principals of Process Research Ortech Inc. (PRO) with the specific goal of commercializing the proprietary technology developed for the production of high purity TiO2 suitable for pigment production. For additional information on PRO please visit the website at www.processortech.com.
About Argex Mining Inc.
ARGEX MINING INC. has recently transitioned from a mining exploration company to a near-term producer of commodities that the world needs: Titanium Dioxide, Iron and Vanadium Pentoxide. 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 TiO2 directly from its 100%-owned deposit.
Additionally, Argex owns 100% of the Mouchalagane property, which is a large Labrador Trough iron ore property that represents further potential upside for Argex shareholders.
Forward-Looking Statements and Disclaimer
This press release may contain forward-looking information within the meaning of applicable securities laws. All information and statements other than statements of historical facts contained in this press release are forward-looking information. Such statements and information may be identified by words such as "about", "approximately", "may", "believes", "expects", "will", "intends", "should", "plans", "predicts", "potential", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof or other comparable terminology. Forward-looking statements are based on the best estimates available to Argex at this time and involve known and unknown risks, uncertainties and other factors that may cause Argex' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Argex' business and activities appears under the heading "Risk Factors" in Argex's Amended and Restated Annual Information Form dated January 14, 2011 for the fiscal year ended December 31, 2009, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Argex will derive therefrom. In particular, no assurance can be given that the acquisition of CTL will be completed or as to the future financial performance of Argex. The forward-looking information contained in this press release is made as of the date hereof and Argex undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward-looking statements.
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.For further information:
| Roy Bonnell, President and Chief Executive Officer |
Argex Mining Inc.
| Argex Mining Inc. |