MONTREAL, March 26, 2013 /CNW Telbec/ - Argex Titanium Inc. (TSXV: RGX)
("Argex" or the "Company") is pleased to provide a corporate update on the
Company's activities over the latter part of 2012 and the first quarter of
Roy Bonnell, President & CEO comments, "The Argex team has made significant
progress over the past six months and the industry has taken notice. Our
efforts in 2012 were supported by enthusiastic shareholders and the financial
community. Our approach has been to move rapidly to production while
mitigating all risks. To this end, the last six months have been dominated by
hard work in the following areas: the feasibility study, the optimization of
our product, the advancement of end-user agreements and the promotion of the
Argex name amongst industry participants. Some of the highlights of this
period and beyond, include:
-- On October 11, 2012, Argex announced the launch of its
feasibility study with GENIVAR Inc., one of Canada's largest
engineering firms, to establish the economic viability of a
titanium dioxide (TiO(2)) first-module production facility and
to provide a capital 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 TiO(2 )processing plants projects using this
patented process(.) At the time of the announcement, Mr.
Bonnell stated that the hiring of GENIVAR to complete the
feasibility study for the future Argex TiO(2) industrial
facility is an important step towards launching commercial
production of our TiO(2 )product. Upon completion of the study,
Argex will be in a position to evaluate major partnership
opportunities, and engage in detailed construction engineering
work and start hiring suppliers. "To date, the work is on time
and on budget," added Enrico Di Cesare, COO and Vice-President
of Technology at Argex, "A feasibility study is an intensive
effort for any company and those involved. We look forward to
sharing the results with everyone in the next few months," he
-- Argex and PPG Industries signed a collaboration agreement for
the development and optimization of pigment grade Titanium
Dioxide (TiO(2)) for paints and coatings combining PPG's paint
technology with Argex TiO(2) proprietary processing technology
in April, 2012. The Agreement provides for, among other things,
the negotiation of a purchase and supply agreement between PPG
and Argex based on the successful development of treatment
technologies. Noted Mr. Bonnell, "We are pleased that the
collaboration between the two companies is much broader than
just a simple off-take agreement. We are not intending to just
make a simple feedstock. We are intending to make pigment which
commands a higher price. Depending on the pigment's use,
different specs are required and different coatings applied. To
have an industry leader on our side working with us
collaboratively through-out the last six months constitutes a
huge plus for Argex. Although the negotiation of a purchase and
supply agreement between PPG and Argex has taken longer than
anticipated, we look forward to finalizing the agreement to the
mutual satisfaction of both parties as soon as possible."
-- On October 18, 2012 Argex announced the appointment of a new
head of sales and marketing, Philippe Guillemaille. Mr.
Guillemaille's focus has been two-fold: promoting Argex to the
existing TiO(2) industry and the development of end-user
relationships. "Despite being a new name, Argex has been able
to capture the industry's attention," said Mr. Guillemaille.
"Its ongoing collaboration with PPG is no doubt part of that,
but from the perspective of the industry players, becoming part
of the American Coatings Association is tremendously important
as it represents some of the biggest names in the coatings
industry right across the supply chain." In terms of his other
responsibilities - sales to end-users, Mr. Guillemaille added
the following, "Currently, we are in talks with many large
end-users interested in using our product, including paint
companies, plastic companies, cosmetic companies, PVC
manufacturers and chemical distribution companies - it is very
exciting. I am often asked by people how long does it take to
sign a purchase and supply agreement. In our case, some of
these deals proposed to us are for a very large volume- up to
50,000 tonnes per annum. Some of these deals proposed to us are
for a very long period - in excess of ten years. In other
words, the monetary figures involved here are potentially very
large and are of significant material amounts, not just for
Argex but also for the companies proposing them. Normally
contracts of this size can be expected to take up to 12-14
months from start to finish to negotiate, depending on the
complexity of the relationship."
-- On February 14, 2013, Argex announced that it had been
recognized by the TSX Venture Exchange as one of the 2013 TSX
Venture 50 Companies, a ranking of strong performing companies
on the TSX Venture Exchange. Argex achieved the second best
rating of all companies included in the mining category. "This
underscored a strong year of performance by our stock,"
commented Mr. Bonnell, "by focusing on operations and moving
rapidly to production while mitigating all risks, we have built
ourselves a strong following in the investment community. I am
pleased to note that on January 9, 2013, we added Cormark
Securities to the list of investment banks covering the Argex
story, which underscores the support we have been receiving."
-- On May 1, 2013, COO Enrico DiCesare and Head of Sales &
Marketing, Philippe Guillemaille will present at the 2013 TiO
(2) World Summit in Barcelona, Spain. In particular, the Argex
team will introduce its process and compare its TiO(2)
production process to current technologies to an audience
composed of the largest and most influential industry players.
Argex is also scheduling a number of meetings and will use this
opportunity to hold discussions with potential partners and
increase its visibility among players active throughout the TiO
(2) supply chain.
"It is not an overstatement that the opportunities that are being presented to
us are exciting and significant," remarked Mr. Bonnell. "The considerable
amount of work undertaken positions us to begin a more public discussion of
pending events as they unfold in the near term."
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 pigment-grade TiO(2) directly from
The process is running continuously at the mini-plant in Mississauga, Ontario.
The closed-loop process is environmentally friendly and produces minimal inert
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.
Roy Bonnell, President and Chief Executive Officer Argex Titanium Inc. 514
Argex Titanium Inc. TSX-V: RGX FSE: ASV OTCBB: ARGEF
INVESTOR RELATIONS: Dave Burwell The Howard Group 1-888-221-0915
MEDIA: Sarah Moreau, Consultant, Financial & Regulatory Affairs H+K Strategies
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SOURCE: Argex Titanium Inc.
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