CALGARY, ALBERTA -- (Marketwired) -- 04/30/13 -- Titanium Corporation Inc. ("Titanium" or the "Company") (TSX VENTURE: TIC) today released financial results for the second quarter ended February 28, 2013.
Titanium continued its drive toward commercialization in the quarter, as its technology received strong government endorsements. The federal government recognized the Company's technology in its annual budget as an example of successful innovative clean technologies being supported by Sustainable Development Technologies Canada ("SDTC"). The National Research Council also recently awarded funding to the Company. The Alberta government is conducting reviews of a fiscal structure required to clarify the fiscal and royalty terms that will govern future major project investments using this new technology.
There is increased Government and industry focus on reducing greenhouse gas ("GHG") emissions, particularly related to oil sands crudes in light of pending and future approvals of pipeline projects and access to international markets. The Company's technology would provide environmental benefits highly relevant to these issues, reducing GHG and volatile organic compound ("VOC") emissions related to froth treatment tailings and tailings ponds.
On the research front, Titanium completed a four month heavy mineral concentrate ("HMC") pilot and conducted paraffinic testing programs at CanmetENERGY. Titanium's portfolio of intellectual property also expanded in the quarter with the award of three key patents.
Scott Nelson, the Company's President and Chief Executive Officer said, "We continued to execute our technical programs successfully, attract government support and demonstrate the economic and environmental benefits of our patented technologies. The recent escalation of environmental concerns and market access restrictions affect all players in the oil sands industry. We know that our technology can deliver solutions and we are working constructively with the industry to finalize the route to commercial implementation."
-- Titanium successfully completed pilot operations at CanmetENERGY to produce a larger sample of cleaned HMC for minerals separation processing into final zircon sample products. The program produced approximately two tonnes of HMC which will be shipped to Australia for further testing. In parallel, a paraffinic pilot program was also conducted at CanmetENERGY to further refine this technology which is at an earlier stage of development. These programs were funded in part by a $1.4 million SDTC Grant received in November, 2012.-- In support of the paraffinic tailings research program at CanmetENERGY, Titanium was awarded a further $0.5 million grant under the National Research Council's Industrial Research Assistance Program ("NRC-IRAP") 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 $10.4 million.-- Titanium announced the awards of key patents relating to the removal of bitumen from heavy mineral concentrates and the recovery of bitumen and solvents from oil sands tailings. These patents support the Company's proprietary solution for environmental remediation of froth treatment tailings and recovery of valuable products currently lost in tailings ponds.-- The Alberta government is conducting reviews of a fiscal framework related to the recovery of minerals and bitumen from oil sands tailings. The framework will provide clarity around royalties, capital cost treatment and other fiscal terms required for planning and investing in the commercial projects.
Net Loss - increased by $0.5 million to $1.1 million for the three month period ended February 28, 2013 as compared to $0.6 million for the same period ended February 29, 2012. As a development stage company, Titanium's net loss for the period is in line with expectations.
Research & Development - R&D expenditures, before government grant recovery, was $1.1 million as compared to $0.6 million in the quarter ended February 29, 2012. 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 $0.5 million in SDTC and IRAP government grant recoveries.
General & Administrative - G&A expense was $0.6 million for the three month period ended February 28, 2013 compared to $0.2 million for the same period ended February 29, 2012. The increase in G&A expenditures in the current quarter is mainly attributed to the recovery of stock based compensation expense of $0.4 million in the three month period ended February 29, 2012 related to the forfeiture of stock options. Other than the recovery of non cash stock based compensation, all other G&A expenditures in the current quarter remained consistent with the three month period ended February 29, 2012.
Cash Position - Titanium's cash position at February 28, 2013 was $6.7 million compared to $8.4 million at August 31, 2012. The cash balance decreased by $1.7 million since August 31, 2012. R&D expenditures incurred for the six month period ended February 28, 2013 were $2.7 million which was off set by the receipt of $1.3 million of SDTC grant funding. In addition, the Company funded G&A expenditures of $1.0 million for the six month period ended February 28, 2013. The Company has sufficient cash and remaining grants in place to fund its R&D and G&A costs for a period in excess of twelve months. As the Company conducts discretionary R&D and engineering projects, consideration for eligible grant funding will be pursued.
To view the Company's management discussion and analysis and financial statements for the quarter ended February 28, 2013, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
GRANT OF DEFERRED SHARE UNITS AND STOCK OPTIONS
The Company also announces that the Board of Directors has granted $50,000 of deferred share units of the Company ("DSUs"), or 55,555 DSUs, to each of our six non-executive directors to align the interests of the non-executive directors with the long term performance of the Company. The DSUs were priced at the closing price of the Company's common shares on April 29, 2013, being the last trading day preceding the grant. The DSUs vested on grant and will be settled in cash at the time of the non-executive director's retirement from the Board of Directors based on the market price of the Company's share at the time of retirement.
Finally, the Company announces that it has issued a total of 950,000 stock options to certain executive officers of the Company in accordance with the Company's shareholder approved stock option plan. The stock options are exercisable at a price of $1.00 per share, expire in five years and vest as to 1/6th every three months, for a period of 18 months, following the date of grant.
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 February 28, 2013 and annual information form for the year ended August 31, 2011 each filed on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the commercialization of the CVW 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 building and operating the CVW project and research activities; 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 CVW 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.