EDMONTON, ALBERTA -- January 26, 2011 -- Titanium Corporation Inc. (the "Company") (TSX-V: TIC) today released financial results for the first quarter ended November 30, 2010. The Company is at an advanced stage of demonstration piloting new clean technologies designed to recover valuable products, including bitumen, from oil sands tailings and reduce negative environmental impacts.
The Company's activities during the quarter were focused on executing its demonstration pilot project at the Canadian Government's CanmetENERGY ("Canmet") oil sands test facilities for two oil sands operators and completing a Private Placement to finance on- going activities of the Company.
Scott Nelson, the Company's President and Chief Executive Officer said, "This has been an outstanding quarter for our Company. We have now demonstrated positive results with the tailings of two major oil sands operators. During 2011 we will conclude advanced pilot testing that simulates operating conditions with the remaining major oil sands operators. Further successful results along with a strong treasury bolstered by our recent successful financing positions us to aggressively move forward with commercialization in 2011."
Net loss for the first quarter of fiscal 2011 was $2.8 million compared to $1.7 million for the comparable 2010 fiscal period. The difference relates to increased research and development costs associated with operating the integrated demonstration pilot in the current period which was not operational in the comparative period.
Research & Development -- R&D expenditures before grant recoveries for the quarter ended November 30, 2010 were $2.8 million as compared to $1.3 million for the same period in 2009. The current quarter expenditures reflect amounts incurred in operating the integrated demonstration pilot. The Company realized $0.9 million in government grants for the quarter ended November 30, 2010 as compared to $0.3 million for the same period in 2009.
General & Administrative -- G&A expenses were unchanged at $0.6 million for the first quarter of fiscal 2011 compared to the same period in fiscal 2010.
Cash & Interest income -- The Company's cash position at November 30, 2010 was $5.5 million (including $0.4 million in restricted investments relating to the Alberta Government grant). This compares to $9.5 million at August 31, 2010 (including $0.4 million in restricted investments relating to the Alberta Government Grant). The Company's cash position has been significantly strengthened as result of the $14.3 million Private Placement completed in December 2009. Interest income decreased during the quarter and the fiscal year due to lower interest rates on re-investment of maturing certificates of deposit and lower investment balances.
To view the Company's Management Discussion and Analysis and Financial Statements for the quarter ended November 30, 2010, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
STOCK OPTION GRANT
The Company reports that on January 25, 2011 it granted to Officers and Directors of the Company 1,850,000 incentive stock options. These incentive stock options will vest based on milestones related to certain of the Company's objectives associated with commercialization of its technology. Subject to the vesting of these incentive stock options, the options are exercisable at $2.00 per share for a period of five years from the date of grant pursuant to the Company's stock option plan and in accordance with the policies of the TSX Venture Exchange.
About Titanium Corporation Inc.
Titanium Corporation Inc. is developing technology to recover heavy minerals and bitumen contained in the waste tailings streams from oil sands mining operations near Fort McMurray, Alberta. The potential benefits from this "Creating Value from Waste TM" proposition are twofold. First, the recovered bitumen and minerals will have intrinsic value and will provide shareholders with a source of revenue. Second, by using an integrated approach to recovering minerals and bitumen, there is potential for industry-wide environmental benefit. 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, 2010 and for the year ended August 31, 2010 on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the advancement of research programs including operational or technical difficulties in connection with research activities; development timeline delays and problems, including unforeseen development costs; reliance on a small number of people, access to and cost of tailings, competition and intellectual property protection and changes to environmental laws and regulations.
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.
For further information, please contact:
President and CEO
Phone: (403) 561-0439
Phone: (416) 577-9927
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