MONTREAL, April 9, 2013 /CNW Telbec/ - Argex Titanium Inc. (TSX-V: RGX) ("Argex" or the "Company") is pleased to announce it has signed a binding memorandum of understanding (MOU) with Valleyfield Enterprises for a long-term lease of at least 235,000 square feet of existing building space located at 1300 Gérard-Cadieux Blvd in Salaberry-de-Valleyfield ("Valleyfield") in Quebec, Canada. This location will house the company's first industrial scale titanium dioxide (TiO2) production facility. The MOU and long-term lease are conditional upon certain conditions being met or waived by Argex.
Located in the Perron Industrial and Harbour Front Park, the site can accommodate additional TiO2 production modules and offers significant expansion potential. This location will enable Argex to save time and avoid the large capital expenditures associated with greenfield plant construction and benefit from the existing industrial infrastructure already in place at the site.
Situated adjacent to Montreal (about 40 km southwest of the city) and close to major port and river infrastructures, the Valleyfield region is already favoured by the hydrometallurgical and chemical processing industry, as its location facilitates the shipping of merchandise via ground and maritime routes. Argex will therefore benefit from a qualified and experienced workforce and access to the natural gas supplies it needs for its initial module and potential expansion. Additionally, the plant will benefit from its close proximity to Hydro Quebec's Beauharnois generating station, one of the largest hydroelectric power plants in the world. The plant's close proximity to Montreal's Trudeau International Airport will also make it easy for customers and potential partners to visit the Argex facilities.
"This represents an important milestone for Argex at a time when the Company is accelerating its progress towards production, and it removes many of the risks associated with a lengthy construction project," declared Roy Bonnell, President and CEO of Argex. "The location of our plant in Valleyfield will easily facilitate delivery of the raw materials and by-products from our supply partners and provide us with the option to expand the infrastructure already available."
"We are pleased to be working in partnership with Argex on such a exciting project" commented Carmine Como, representative of Valleyfield Enterprises. "We see Argex's decision to select this site for the long-term as significant contribution to the revitalization of the Perron Industrial Park"
"Argex Titanium is the first TiO2 production company to come to Salaberry-de-Valleyfield. The future of our great community involves innovative projects that combine sustainable development with economic development. It is clear that our city is becoming more and more a industrial hub for mineral processing plants thanks to our road, rail and port infrastructures" said Denis Lapointe, mayor.
"The Port of Valleyfield is an important asset for the region, and I am delighted that it played a role in attracting a new business to Salaberry-de-Valleyfield," stated Michel Gadoua, President and CEO of the Société du Port de Valleyfield. "Right from the start, we offered Argex our full collaboration, and we can assure it that this partnership will endure for as long as Argex conducts operations in Valleyfield."
The Argex feasibility study, announced on October 11, 2012, in collaboration with Genivar, one of Canada's largest engineering firms, will provide a cost estimate for the first Argex production module and will recommend a development plan. Once the study has been submitted, Argex will continue to pursue additional partnership opportunities and it will launch the detailed engineering work and the hiring of suppliers necessary, many of which are expected to be situated locally in the Valleyfield area.
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, Quebec as the location for its first industrial-sized production facility. The location of the site can be viewed at Argex Valleyfield.
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.
Image with caption: "Preliminary 3D image of the Argex Titanium production plant. (CNW Group/Argex Titanium Inc.)". Image available at: http://photos.newswire.ca/images/download/20130409_C3666_PHOTO_EN_25327.jpg
SOURCE: Argex Titanium Inc.
For further information:
Argex Titanium Inc.
Roy Bonnell, President and Chief Executive Officer
Argex Titanium Inc.
The Howard Group
Sarah Moreau, Consultant, Financial & Regulatory Affairs
514 395-0375, ext.234