EDMONTON, ALBERTA -- (Marketwire) -- 01/24/13 -- Titanium Corporation Inc. (the "Company") (TSX VENTURE: TIC) today released financial results for the first quarter ended November 30, 2012.
The first quarter marked a number of significant and necessary steps advancing the Company toward commercialization. The Company continues to make progress with all stakeholders despite challenging conditions in the oil sands industry. The Canadian and Alberta Governments are acutely aware of the importance of advancing sustainable technologies and are highly supportive of the Company's initiatives with grant funding and fiscal regime development for commodities recovered from tailings.
The Company continued its focus on commercial development of its mineral process with the successful commissioning of pilot operations to produce larger volume bulk mineral samples for customer testing. The Company's portfolio of intellectual property was expanded in the quarter with the award of two key patents. The Company is confident that with Government support and the heightened focus on the social license to operate, the substantial environmental benefits that its technology offers will be attractive to both the industry and Government.
-- The Company successfully commissioned pilot operations at CanmetENERGY to produce a larger sample of cleaned heavy mineral concentrate ("HMC") for minerals separation processing into final zircon sample products. The program, which will run until February 2013, will produce approximately 2 tonnes of HMC which will be shipped to Australia for further testing. In parallel, a paraffinic pilot program is also underway at CanmetENERGY to further refine this technology which is at an earlier stage of development.-- In support of the current pre-commercial program at CanmetENERGY, the Company was awarded a further $1.4 million Canadian Government SDTC Grant to fund a portion of the program costs. Both the Alberta and Canadian Governments have been highly supportive of the Company's programs with grants to date of approximately $10 million.-- The Company announced that two key patents have been issued in support of its proprietary solution for environmental remediation of froth treatment tailings and recovery of bitumen, solvents, valuable heavy minerals and water currently lost in tailings ponds. The first patent relating to the removal of bitumen from HMC and the second, for solvent recovery from oil sands tailings.-- The Alberta Government is at an advanced stage of developing a fiscal regime for minerals and bitumen recovered from oil sands tailings. When completed, this framework will be reviewed with industry and the Company with the aim of advancing the first project.-- During the quarter, the Company appeared before the Canadian House of Commons Standing Committee on Natural Resources which is hearing testimony on innovation in the energy sector. The Company's detailed submission and November 29, 2012 hearing testimony are available on Company and Canadian Government websites.-- The Company continues to develop relationships with strategic partners who bring operational, marketing and financing resources. The size, complexity and risks associated with the proposed projects warrants the Company aligning with strategic partners.
Scott Nelson, the Company's President and Chief Executive Officer said, "After the completion of our fiscal 2013 quarter, we are in a stronger position to reach our commercialization goals. Patent awards, Government funding and fiscal structures are all-important measures. We are encouraged that Government is now playing an active role."
Net Loss - remained unchanged at $1.3 million for the three month period ended November 30, 2012 as compared to the three month period ended November 30, 2011. While General and Administrative ("G&A") expense was lower by $0.4 million in the current quarter compared to the three month period ended November 30, 2011, Research and Development ("R&D") spending, net of government grant recoveries was $0.4 million higher compared to the three month period ended November 30, 2011. G&A expense was lower in the current quarter primarily related to lower stock based compensation in the current quarter. R&D expense, net of government grant recoveries, was higher in the current quarter as the Company commenced pilot operations at the CanmetENERGY facility for the HMC bulk sample program and technical work related to the larger volume paraffinic program.
Research & Development - R&D expenditures, before government grant recovery, was $1.6 million as compared to $0.3 million in the quarter ended November 30, 2011. The increase in R&D spending relates to pilot work currently being conducted at CanmetENERGY on larger volume paraffinic tailings and pre-commercialization minerals development. These R&D expenses have been partially offset in the quarter by $0.8 million in SDTC government grant recoveries.
General & Administrative - G&A expense was $0.5 million for the three month period ended November 30, 2012 compared to $0.9 million for the same period ended November 30, 2011. The reduction in G&A expenditures in the current quarter is mainly attributed to lower stock based compensation expense of $0.3 million, and $0.1 million in investor relations and regulatory expense compared to the same three month period ended November 30, 2011.
Cash Position - The Company's cash position at November 30, 2012 was $8.3 million compared to $8.4 million at August 31, 2012. The cash balance did not change significantly even with the increase in R&D expenditures due to additional receipt of 90% ($1.3 million) of SDTC grant funding received in the quarter.
To view the Company's Management Discussion and Analysis and Financial Statements for the quarter ended November 30, 2012, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
The Company announced that Mr. Kelsey Clark of Burnet, Duckworth & Palmer LLP has been appointed Secretary of the Company. Mr. Clark's appointment is subject to the approval of the TSX Venture Exchange.
The Company also announced that a copy of the presentation made available the Company's annual general and special meeting held on January 23, 2012 is now available on the Company's website.
About Titanium Corporation Inc.
Titanium Corporation Inc. has developed innovative technologies to recover bitumen, solvent, valuable heavy minerals and water from oil sands waste tailings. The benefits are twofold: the recovered bitumen, solvent and minerals will have economic value; and green benefits which will significantly reduce environmental impacts of the oil sands industry. The Company's shares trade on the TSX-V under the symbol "TIC". For more information visit the Company's website at www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Certain statements contained herein regarding the Company and its plans constitute "forward-looking statements" within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions, projections, and other forward-looking statements will not prove to be accurate. We direct you to our statement of risks and uncertainties more particularly described and updated in the Company's Management Discussion and Analysis filed for the period ended November 30, 2012 on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the commercialization of the Project on the timetable anticipated or at all; access to capital on acceptable terms to fund our commercialization plan, operational or technical difficulties in connection with research activities and building and operating the Project; uncertainty related to the cost to build and operate CVW facilities; reliance on a small number of people, access to and cost of oil sands tailings necessary to carry out the project, competition and intellectual property protection and changes to environmental laws and regulation.
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.
Titanium Corporation Inc.
President & CEO
Titanium Corporation Inc.