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.
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