MONTREAL, Oct. 11, 2012 /CNW Telbec/ - Argex Titanium Inc. (TSXV: RGX) ("Argex") is pleased to announce that it has engaged GENIVAR Inc. (TSX: GNV) (GENIVAR), a Canadian engineering services firm and one of the world's leading professional services organizations, to conduct a feasibility study to establish the economic viability of a titanium dioxide (TiO2) first-module production facility and to provide a development plan and capital estimate. Citing the potential game-changing nature of the novel CTL process, both GENIVAR and Argex have agreed to mutual terms of exclusivity for engineering services related to the development and construction of TiO2 processing plant projects using this patented process. Argex has also appointed Aecom, a global provider of professional and industrial services, to conduct an environmental study for Argex and to accompany it in obtaining the required environmental permits.
The studies follow positive results from a TiO2 grade sensitivity study conducted earlier this year, which indicated improved project economics using commercially available sulfate grade ilmenite feedstock, and a recent milestone breakthrough regarding significant improvements in the Argex CTL hydrometallurgical process (see News Releases dated June 5 and 13, 2012).
"The hiring of GENIVAR to complete the feasibility study for the future Argex TiO2 industrial facility is an important step towards launching commercial production of our TiO2 product. The preliminary work already completed by Argex's COO, Enrico Di Cesare will expedite the completion of the study," said Roy Bonnell, President and Chief Executive Officer of Argex. "Upon completion of the study, we will be in a position to evaluate major partnership opportunities, and engage in detailed construction engineering work and start hiring suppliers."
"It is our intention to commence the operation of the first module using commercially available feedstock as our sensitivity analysis news-released in June demonstrated strongly improved economics of the project and faster time to market. Our wholly-owned properties remain a low-risk option for future expansion, an alternative to commercial feedstock price increase or non-availability due to feedstock market conditions."
Argex currently operates a pilot plant in Mississauga, Ontario, where its CTL process runs continuously.
Additionally, Argex reports that it has issued a total of 750,000 stock options today, October 11, 2012. Employees were granted 350,000 stock options while the 400,000 balance was granted to consultants. These incentive stock options are exercisable at $1.10 with an expiry date of October 11, 2017 and have an 18-month vesting period.
GENIVAR, through its combination with WSP, is one of the world's leading professional services firms, working with governments, businesses, architects and planners and providing integrated solutions across many disciplines. The firm provides services to transform the built environment and restore the natural environment, and its expertise ranges from environmental remediation to urban planning, from engineering iconic buildings to designing sustainable transport networks, and from developing the energy sources of the future to enabling new ways of extracting essential resources. It has approximately 14,500 employees, mainly engineers, technicians, scientists and architects, as well as various environmental experts, based in more than 30 countries on all continents. www.genivar.com
About Argex Titanium Inc.
ARGEX Titanium INC. is a near-term producer of Titanium Dioxide. 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 run-of-mine material.
The process is running continuously at the pilot-plant in Mississauga, Ontario. The closed-loop process is environmentally friendly and produces minimal inert tailings.
Additionally, the Corporation owns 100% of the Mouchalagane property, which is a large Labrador trough iron ore property that represents further potential upside for the Argex shareholders.
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:
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