TORONTO, Jan. 27 /CNW/ - Titanium Corporation Inc. (the "Company")
(TSX-V: TIC) today released its financial results for the three month period
ended November 30, 2008.
- Based on encouraging progress from a number of laboratory based test
results, the Company proceeded with scoping and contracting a number
of further R&D programs with external research firms.
- A comprehensive review and update of the strategic business plan
reconfirmed the research and development approach being undertaken by
the Company is appropriate.
- Expenses increased to $1.271 million from $0.958 million in the first
quarter of fiscal 2008 due to higher R&D activities and
administrative costs; and
- The Company remains in a strong financial position with
$19.298 million in cash and short-term investments (including
$3.552 million in restricted cash).
Scott Nelson, the Company's President and Chief Executive Officer stated
"We continue to make steady progress. During the quarter, management and the
Board of Directors conducted a comprehensive review and update of our
strategic business plan reviewing technical progress, outcomes, markets and
business conditions. The review reconfirmed that the research and development
approach we are undertaking is appropriate." He also commented that "Our
bitumen research and development program has provided encouraging results
allowing us to move forward to the next phase which is continuous bench scale
Research & Development Update - The research and development ("R&D")
program is being managed by the Company's in-house experts in minerals and oil
sands research in conjunction with leading independent research firms. During
the quarter, the technical programs were focused on the challenges of removing
residual bitumen from the heavy minerals and recovering bitumen from the
Bitumen Removal and Recovery - Based on encouraging progress from a
number of laboratory based test results, the Company proceeded with scoping
and contracting a number of further R&D programs with external research firms.
A continuous bench scale testing process has been designed, equipment
requisitioned and work is expected to commence in early 2009. In parallel with
the core research programs, a number of projects were scoped and contracted in
related areas including water treatment and reuse, and solvent recovery.
Minerals Concentration and Separation - The minerals research is
substantially completed. Testing of prospective new technologies to further
refine the process continues at the Regina facility. The Company also signed a
contract with a large international research organization that will review and
refine the work already completed at the Regina facility.
Expenses - Expenses increased to $1.271 million from $0.958 million in
the first quarter of 2008 due to higher administrative costs and R&D
activities. Increased administration costs reflect the timing of a performance
bonus and the addition of senior management during the latter part of fiscal
Research and development costs also increased in the first quarter. The
increase in outsourced R&D is the primary reason for the change. A portion of
these outsourced R&D costs are being funded by the Alberta Government under
the provisions of the Energy Innovation Grant.
Cash Position - The Company is in a strong financial position with
$19.298 million in cash and short-term investments (including $3.552 million
of restricted cash) at November 30, 2008, compared to $20.589 million
(including $3.524 million of restricted cash) at August 31, 2008. The
operations, R&D program and capital expenditures are financed from current
cash resources. This level of cash should be sufficient to fund the Company's
share of the R&D program over the next two years; however, the cost of future
pilot work is not known at this time. Assuming the R&D program is successful,
external financing will be required to commercialize the technology.
To view the Company's Management's Discussion and Analysis and Financial
Statements for the quarter ended November 30, 2008, please visit our website
at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium Corporation Inc. is a Canadian company developing a commercial
process to maximize the inherent value in the waste material contained in oil
sands tailings in the Fort McMurray, Athabasca region by integrating the
recovery of heavy minerals and bitumen. This technology would be applied to
all mined oil sands operations delivering environmental benefits with the
objective of creating a new sustainable industry for Canada. Titanium
Corporation Inc. shares trade on the TSX.V under the symbol TIC. For more
information, please visit www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
We direct you to our risks and uncertainties statements more particularly
described and updated in Titanium Corporation's Management's Discussion and
Analysis filed for the period ended November 30, 2008, on SEDAR
(www.sedar.com). Most notably these risks include, but are not limited to:
risks associated with the advancement of research and development programs
including the successful commercial recovery of bitumen and heavy minerals and
operating or technical difficulties in connection with development activities.
All subsequent written and oral forward-looking statements are based on
estimates and opinions of management on the dates they are made and expressly
qualified in their entirety by this notice.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
For further information:
For further information: Gordon Pridham, Chairman, Tel: (416) 955-0715
x223, Email: firstname.lastname@example.org; Tim Benson, Investor Relations,
Tel: (416) 955-0715 x226, Email: email@example.com