TORONTO: Titanium Corporation Inc. (TSXV:TIC) is pleased to announce that it has settled the terms of the offering of securities previously announced in a press release dated July 19, 2005. BMO Nesbitt Burns Inc. is acting as lead agent in a syndicate with GMP Securities Limited, Clarus Securities Inc., Paradigm Capital Inc., Acadian Securities Inc., Dundee Securities Corporation and First Associates Investments Inc. to sell, by private placement, 10,611,112 units, comprised of one common share in the capital of the Company and one whole warrant at a price of $2.25 per unit for gross proceeds of $23,875,002. Each warrant will be exercisable for one common share at an exercise price of $3.25 per common share for a period of 24 months after the closing date.
The offering is subject to regulatory approval and is expected to close on or about August 25, 2005.
"This marks yet another important milestone for Titanium Corporation and its shareholders" comments Scott Nelson, President and Chief Executive Officer. "These funds will result in a strengthening of our balance sheet allowing the Company to advance its business plan. The commercial processing facility to be constructed with these proceeds will be capable of expansion to its full capacity by future Project Financing. We look forward to enhancing shareholder value as Titanium Corporation works towards the realization of its ultimate goal of producing titanium and zircon from Canada's oil sands."
The net proceeds of the private placement will be used primarily to fund the next phase of the Company's Oil Sands Project including the design, engineering and construction of expandable production facilities and for general corporate purposes.
The common shares and the warrants will be subject to a four-month hold period under applicable Canadian securities laws.
About Titanium Corporation
Titanium Corporation Inc. is a Toronto-based mineral development company whose shares are listed on the TSX Venture Exchange under the symbol "TIC", U.S. clearing symbol "TITUF", CUSIP Number: 88833T104. The Company's mission is to become the first titanium and zircon sand producer from Canada's oil sands. Through extensive research, including the construction and operation of a pilot facility, the Company has developed proprietary technology to recover valuable titanium-bearing minerals and zircon from oil sands tailings. For more information, please visit www.titaniumcorporation.com.
Disclosure regarding forward-looking statements
Note: This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations which are based on assumptions and are subject to a number of risks and uncertainties and are not guarantees of future performance of the Corporation. These risks and uncertainties could cause actual results and the Corporation's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These risks and uncertainties are more particularly described on page 24 in the Risk Factors section of Titanium Corporation's Annual Information Form which was filed on SEDAR (www.sedar.com) January 18, 2005, as updated by the Corporation's Annual and Quarterly Management's Discussion and Analysis. Most notably these risks and assumptions include risks associated with the market price of zircon and titanium products, costs of construction and operation of facilities, and assumptions about construction, timing and delivery. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Corporation assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
For further information:
George Elliott, Chairman
(416) 955-0715 X 222
Scott Nelson, President & CEO
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