Argex to purchase up to a 50.1% of Canadian Titanium Limited, to acquire
control of proprietary technology and the underlying patents.
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
MONTREAL, Feb. 14 /CNW Telbec/ - Argex Mining Inc. (Argex) (TSX-V: RGX)
(FSE: ASV) (OTCBB: ARGEF) has signed a letter of intent (LOI) with the
principals of Canadian Titanium Ltd. (CTL) for the purchase of up to a
50.1% interest in CTL for a total consideration of $1 million and 2
million shares of Argex to be paid on the successful completion of
certain milestones and a 2% royalty on Argex titanium dioxide (TiO2)
The Principals of CTL own proprietary technology and underlying patents
that Argex will be implementing in Phase III metallurgical testing with
Process Research Ortech (PRO).
Argex announced by press release on February 10, 2011, the results of
the implementation of the technology by PRO in the Phase I test work on
the La Blache deposit was the production of high purity 99.8% TiO2.
At the time of the announcement, Michael Dehn, Argex president and CEO
described the metallurgical results as follows, "The metallurgical
results to date have been stellar. Results to date continue to exceed
our expectations which were always very high. The applicability of the
process to La Blache continues to demonstrate that La Blache is truly a
world class titanium-iron-vanadium deposit. By using known technology
innovatively, the process allows Argex to process from ore to high
value product in one location while potentially producing inert
The LOI provides for milestone payments of the total consideration which
shall be paid as follows: (i) 10% on signing of the transaction
documents; (ii) 20% on completion of Laboratory Work (phase II
metallurgical test work); (iii) 30% on completion of mini-plant work
(phase III metallurgical test work), and (iv) 40 % on completion of the
engineering work for a production facility.
"We are very pleased with this business transaction which will permit
Argex to advance towards production with proprietary technology that we
believe will change the titanium dioxide industry the way heap leaching
changed the gold mining industry," stated Argex president and CEO
Michael Dehn, "Going forward with CTL and its team, we will continue
technological improvements and innovation aimed at improving Argex's
bottom line mining profitability as well as creating additional revenue
streams from licensing and maintenance revenue generated through the
Argex has been working closely with the principals of CTL for nearly 12
months and the acquisition of the technology will be mutually
beneficial to both parties' shareholders.
There are numerous conditions that must be satisfied prior to the
closing of this transaction, including the negotiation and signature of
definitive agreements. Argex can give no assurances that this
transaction will be completed. The acquisition of a controlling
interest in CTL is subject to relevant security and exchange approval.
About Canadian Titanium Ltd.
Canadian Titanium Limited (CTL) based in Mississauga, Ontario, Canada,
was incorporated in 2005 by the principals of Process Research Ortech
Inc (PRO) with the specific goal of commercializing the proprietory
technology developed for the production of high purity TiO2 suitable
for pigment production. For additional information on PRO please visit
the web site at www.processortech.com.
About Argex Mining Inc.
Argex is a junior titanium, iron, vanadium and magnesium explorer with
projects in Québec, Canada. Headquartered in Montreal, Québec with
plans to rapidly advance towards titanium production at the 100%-owned
La Blache deposit located near Baie-Comeau, Québec. Argex also owns
100% of the Mouchalagane Iron Ore project, 380 kilometres north of
Baie-Comeau, Québec and of the same type of deposit as ore bodies
currently being mined by Québec Cartier Mining's (Arcelor Mittal) Fire
Lake Mine and Consolidated Thompson's Bloom Lake Mine. Recently, Argex
expanded its land holdings near Baie-Comeau, Québec surrounding
Consolidated Thompson's Lac Brûlé Titanium-Iron-Vanadium deposit. For
additional information, please visit our website at www.argex.ca.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that
involve risks and uncertainties. Although the company believes the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurances that its expectations
will be achieved. Factors that could cause actual results to differ
materially from expectations include the effects of general economic
conditions, actions by government authorities, uncertainties associated
with contract negotiations, additional financing requirements, market
acceptance of the Company's products and competitive pressures. These
factors and others are more fully discussed in Company filings with
Canadian securities regulatory authorities
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.
SOURCE ARGEX MINING INC.
For further information:
For More Information:
Michael Dehn, President and CEO
Argex Mining Inc.
Paradox Public Relations at 514-341-0408 or 1-866-460-0408