CALGARY, ALBERTA -- July 18, 2017 -- Titanium Corporation Inc. (the "Company" or "Titanium") (TSX-V: TIC) today released its results for the third quarter ended May 31, 2017. The Company is achieving major steps toward the first commercial implementation of its technology at an oil sands site, working closely with industry and government, arranging funding from government programs and bolstering its management team. On July 7, 2017, the Alberta Government announced the award of a $5 million grant from Emissions Reduction Alberta ("ERA") to fund approximately 50% of design engineering costs toward implementation of the Company's technology at Canadian Natural Resources Limited's Horizon oil sands site.
"We are very excited to be working with Canadian Natural and pleased with the government support we have been receiving," commented Scott Nelson, Titanium's President and Chief Executive Officer. "Our team is working closely with Canadian Natural to meet the timelines and conditions set by ERA and move ahead with engineering design, a key step forward in commercialization of our technology."
The following are highlights and announcements during the first three quarters of the year and subsequent months:
Titanium is focused on achieving long-term financial success by commercializing its innovative CVW(tm) technologies and achieving a first commercial project. The Company's successful rights offering and loan repayment enables continued progress towards commercial success. However, until a commercial investment is made the Company expects to incur losses. With the completion of extensive pilot testing on its CVW(tm) technology, research & development ("R&D") investment has been substantially reduced as the Company focuses its resources on commercialization.
Net Loss - Net loss for the three month period ended May 31, 2017 was $0.7 million compared to $0.8 million for the three month period ended May 31, 2016. The decrease in net loss by $0.1 million relates primarily to lower deferred financing costs in the current period associated with the loan outstanding in the corresponding period in 2016. Titanium's net loss for the period is in line with expectations as a development stage company.
Research & Development ("R&D") - For the three month period ended May 31, 2017, R&D spending was $0.2 million and consisted primarily of compensation for technical staff and rent, equipment storage fees, and patent filing and maintenance fees. R&D spending was consistent at $0.2 million with the corresponding period in 2016. Until a commercial arrangement is reached, R&D expenses in future quarters will be modest.
General & Administrative ("G&A") - G&A expense was $0.4 million for the three month period ended May 31, 2017 a decrease of $0.1 million compared the three month period ended May 31, 2016 related to lower stock option expense incurred in the current quarter. Included in the quarterly G&A expenses are non-cash items of $0.2 million for stock based compensation and equity settled compensation which was lower by $0.1 million for the three month period in the corresponding period of $0.3 million.
Cash Position - The Company had $4.8 million in cash at May 31, 2017 as compared to $0.6 million at August 31, 2016 after expenses from the financing and other operating expenses incurred to support progress towards commercialization. The closing of the fully subscribed rights offering on December 19, 2016 included the receipt of $6.5 million from the issuance of 13,069,062 common shares and the repayment of $1.0 million of the outstanding loan facility and extinguishment of the Company's debt obligations.
To view the Company's management discussion and analysis and interim condensed financial statements for the three and nine month periods ended May 31, 2017, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium Corporation's CVW(tm) technology provides sustainable solutions to reduce the environmental footprint of the oil sands industry. Our technology reduces the environmental impact of oil sands froth treatment tailings while economically recovering valuable products that would otherwise be lost. CVW(tm) recovers bitumen, solvents and heavy minerals from tailings, preventing these commodities from entering tailings ponds and the atmosphere: volatile organic compound and greenhouse gas emissions are materially reduced; hot tailings water is improved in quality for recycling; and residual tailings can be thickened more readily. A new minerals industry will be created commencing with the production and export of zircon, an essential ingredient in ceramics. The Company's shares trade on the TSX-V under the symbol "TIC". For more information please visit the Company's website at www.titaniumcorporation.com.
Disclosure regarding forward-looking information
This news release contains forward-looking statements and information that reflects the current expectations of management about the future results, performance, achievements, prospects or opportunities for Titanium, including statements relating to advantages of the Company's technology and the creation of a mineral sands industry. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "believe", "project", "should" or "continue" or the negative thereof or similar variations.
Forward-looking information is presented in this news release for the purpose of assisting investors and others in understanding certain key elements of our financial results and business plan, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
Forward-looking information, by its very nature, is subject to inherent risks and uncertainties and is based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking information and that our business outlook, objectives, plans and strategic priorities may not be achieved. In particular, the forward-looking information contained in this news release is based on the results of our research, pilot programs, studies, and commercialization efforts described in our management's discussion & analysis ("MD&A") under the heading "Titanium's Business". The Company has not commercially demonstrated its technologies and there can be no assurance that such research, pilot programs, and studies will prove to be accurate nor that such commercialization efforts will be successful, as actual results and future events could differ materially from those expected or estimated in such forward-looking statements. As a result, we cannot guarantee that any forward-looking information will materialize and we caution you against relying on any of this forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
Additional information on these and other factors are disclosed in our MD&A, including under the heading "Discussion of Risks", and in other reports filed with the securities regulatory authorities in Canada from time to time and available on SEDAR (sedar.com).
The forward-looking information contained in this news release describes our expectations as of July 18, 2017 and, accordingly, are subject to change after such date. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking information contained in this news release, whether as a result of new information, future events or otherwise.
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
Vice President Finance & CFO
Tel: (403) 874-9498
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