EDMONTON, ALBERTA -- July 20, 2011 -- Titanium Corporation Inc. (the "Company") (TSX-V: TIC) today released financial results for the third quarter ended May 31, 2011.
The Company has now completed demonstration piloting at CanmetENERGY for the three naphtha based oil sands operators achieving overall bitumen and solvent recoveries of 75%, the top end of targeted ranges. Detailed technical reports of pilot results have been completed and reviewed with the three oil sands operators participating in the demonstration pilot. The Company's engineering partner SNC-Lavalin has completed preliminary site-specific engineering for one of the oil sands sites.
Scott Nelson, the Company's President and Chief Executive Officer said, "Decommissioning at CanmetENERGY in May marked the conclusion of our highly successful 12 month demonstration pilot. Based on outstanding results, we are moving forward with our industry partners and Government. Although our ongoing discussions and planning with these partners generates fewer reportable events than the pilot project phase, our team is now focused on ultimate commercialization. I would also like to commend our partners including CanmetENERGY, SNC-Lavalin and Maxxam Analytics for their valuable support and advice during the pilot program".
Net loss for the third quarter of fiscal 2011 was $3.1 million compared to $1.5 million for the comparable 2010 fiscal period. The difference relates to a lower recovery of government grants in the current quarter as the Company had substantially completed the R&D programs that were eligible for grant funding. With the decommissioning of the demonstration pilot in May, R&D costs will be substantially lower in the fourth quarter.
Research & Development -- R&D expenditures before grant recoveries for the quarter ended May 31, 2011 were $2.6 million as compared to $2.9 million for the same period in 2010. The Company realized $1.0 million in government grants for the quarter ended May 31, 2011 as compared to $1.8 million for the same period in 2010 as the remaining grant funding, related to the demonstration pilot, was substantially realized in the quarter.
General & Administrative -- G&A expenses was marginally higher at $0.4 million for the third quarter of fiscal 2011 as compared to $0.3 million compared to the same period in fiscal 2010 as a result of costs incurred for investor relations activities and higher compensation costs.
Cash & Interest income -- The Company's cash position at May 31, 2011 was $13.1 million compared to $9.5 million at August 31, 2010. Interest income increased during the quarter and the fiscal year due to higher interest rates and higher cash balances.
Stock Options - Further to the Company's news release of January 26, 2011 the Board of Directors has approved the vesting of 925,000 options previously granted to its directors and officers on January 25, 2011. 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.
To view the Company's Management Discussion and Analysis and Financial Statements for the quarter ended May 31, 2011, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
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 February 28, 2011 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, contact:
President & CEO
Tel: (403) 561-0439
Tel: (416) 577-9927
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