MONTREAL, Aug. 13, 2015 /CNW Telbec/ - Argex Titanium Inc. (TSX: RGX), an emerging producer of high-grade titanium dioxide (TiO2) used as white pigment in paint, plastic, paper, cosmetics and other applications, reports progress on feedstock strategy. Argex has signed letters of intent with Ilmenite mining and distribution companies across Europe and India, for the supply of Ilmenite concentrate to be shipped to its initial production facility.
These agreements put forward by Argex lay the groundwork for a complete feedstock acquisition strategy that will help Argex achieve its goal of being the lowest cost producer of TiO2 in the industry.
- The agreements cover the full amount of 50,000 tons of yearly production.
- The agreements are with trading houses and mining companies selected on price, quality and stability of supply.
- The agreements were subsequent to successful compatibility testing with the Argex process.
- The feedstock selection process will remain continuous and directed towards reducing costs.
- The Argex process has allowed multiple site selection and flexibility to acquire feedstock that can be less desired by others supporting its advantage in the competitive landscape.
"Typical Ti02 feedstock can run up to a level of 30% of a cost structure. Our target will be to keep this number below 10% without affecting end product quality as well as stability of supply. Feedstock is an important cost component. We see further opportunities to reduce production costs as the technology increases in usage", said Roy Bonnell, CEO of Argex.
About Argex Titanium
Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications. The Corporation's unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods. The Corporation's primary near term goal is to advance toward a 50,000 tons per annum production module as a first step in its goal to transform the 5.7 million tons per annum TiO2 industry.
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 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" "target" 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, the Corporation's anticipated use of proceeds as well as those described under "Risk Factors" in Argex's Annual Information Form for the fiscal year ended December 31, 2014, 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.
SOURCE Argex Titanium Inc.
For further information: Corporation: Serge Depatie, VP Communications and Investor Relations and Interim CFO, Argex Titanium Inc., 514-843-5959 x 233, [email protected]; Investor Relations: The Howard Group, Dave Burwell, Tel 888-221-0915, [email protected]