This release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or for dissemination in the United States.
MONTREAL, July 8, 2013 /CNW Telbec/ - Argex Titanium Inc. (TSXV: RGX) ("Argex") is pleased to announce that it has entered into letters of intent for a $10 million non-brokered private placement with two subscribers: Ressources Québec, a subsidiary of Investissement Québec, and a U.S.-based investment fund manager, a current Argex shareholder. Each subscriber will invest $5 million in connection with the proposed private placement. Argex will issue a total of 9,756,098 common shares to the two subscribers at a price of $1.025 per share, representing the volume weighted average closing price of Argex's shares on the TSX Venture Exchange for the 20 trading days prior to the date of signing of the two letters of intent.
Roy Bonnell, President and Chief Executive Officer of Argex, commented, "Ressources Québec, a subsidiary of Investissement Québec, has indicated in this agreement its interest to participate in the future financing of our first industrial-sized plant in Valleyfield, Québec. Ressources Québec is one of Québec's most important financial resources for such projects. We are very pleased to welcome its initial investment in Argex. We are confident that both participants in this private placement will play an increasingly important role as Argex continues to advance towards production."
"The Québec government is proud to support this strategic investment project, which will have substantial economic spin-offs for the Montérégie region. Québec's prosperity depends on projects like this one from Argex, which combine innovation and economic development," noted Élaine Zakaïb, Minister for Industrial Policy and the Banque de développement économique du Québec. "This investment will enable Argex not only to conduct its R&D in Valleyfield, but also to continue expanding its operations there."
The private placement, which is expected to close in early August 2013, will be effected pursuant to prospectus exemptions under applicable Canadian securities legislation. The private placement is subject to regulatory approval, including that of the TSX Venture Exchange, and to various closing conditions, including the signing of definitive subscription agreements.
The shares to be issued at closing will be subject to a four-month "hold period" under applicable Canadian securities legislation and the policies of the TSX Venture Exchange. There are presently 120,058,171 common shares issued and outstanding. Upon closing of the private placement, there will be 129,814,269 common shares of Argex issued and outstanding. No warrants will be issued and Argex will not pay any commissions in connection with the private placement.
About Investissement Québec
Investissement Québec's mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment.
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, Québec 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 Management's Discussion and Analysis of the Financial Condition and Results of Operations 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.
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 Titanium Inc.
For further information:
Mark Billings, Chief Financial Officer
Argex Titanium Inc.
514-843-5959 x 144
Argex Titanium Inc.
The Howard Group
Sarah Moreau, Consultant, Financial & Regulatory Affairs
514 395-0375, ext.234