CALGARY, ALBERTA -- November 13, 2013 -- Titanium Corporation Inc. (the "Company" or "Titanium") (TSX-V: TIC) today released its results for the fourth quarter and fiscal year ended August 31, 2013. During 2013, the Company successfully completed a $4.1 million pilot program and is focusing its resources on commercialization, working with oil sands operators on proposals which are currently under review.
"Our Company is now in an optimal position to commercialize our technologies," commented Scott Nelson, Titanium's President and Chief Executive Officer. "We are working both directly with oil sands operators and collaboratively through Canada's Oil Sands Innovation Alliance ("COSIA"). The industry is systematically addressing opportunities that improve resource recoveries and environmental performance and our project fits both of those criteria."
The following are highlights for the three and twelve month periods ended August 31, 2013:
Scott Nelson continued, "Achieving commercialization is the most challenging phase of any start-up, technology-driven venture, and we continue our drive for agreement by oil sands producers and the Government of Alberta to move forward and make commercialization possible. 2014 promises to be an exciting year for Titanium Corporation."
FISCAL 2013 FINANCIAL OVERVIEW
As a research and development company, Titanium is focused on achieving long-term financial success by taking its innovative technologies into commercial production. Until commercial investment is made and a plant is built and operating, the Company expects to incur losses. However, with pilot testing completed, R&D investment in future quarters will be substantially reduced as the Company focuses its resources on commercialization.
Net Loss -- For the fiscal year ended August 31, 2013 net loss was $4.3 million compared to $2.9 million for the year ended August 31, 2012. This increase in net loss of $1.4 million is reflective of the operation of the HMC bulk minerals pilot and the work related to the paraffinic tailings project conducted during the fiscal year. With the conclusion of pilot testing and as a development stage company, Titanium's net loss for the period is in line with expectations.
Research & Development -- For the year ended August 31, 2013, R&D spending, before recoveries, was $4.2 million offset by $2.0 million in government grant recoveries and research tax credits. This compares to gross R&D spending of $1.7 million for the year ended August 31, 2012, offset by research tax credits of $0.8 million. The increase in R&D spending was related to pilot work on larger volume paraffinic tailings and pre-commercialization minerals development work, concluded in May 2013. Having completed its major piloting projects at CanmetENERGY, the Company is reducing staff and overhead costs to conserve cash and focusing its resources on commercialization.
General & Administrative ("G&A") -- G&A expense was $2.3 million for the year ended August 31, 2013 as compared to $2.1 million for the year ended August 31, 2012. The increase in G&A expense is the result of the deferred compensation expense related to the issuance of deferred share units ("DSUs") to non-executive directors and non-cash stock based compensation charges of $0.2 million. None of these charges were paid out in cash during the year. All other G&A expenses remained lower by $0.3 million for the year ended August 31, 2013 as compared to the prior year.
Cash Position -- The Company had $4.1 million in cash at August 31, 2013 as compared to $8.4 million at August 31, 2012. The decrease in cash of $4.3 million for the year ended August 31, 2013 relates to R&D piloting and G&A expenses incurred which were offset by the receipt of $1.3 million in government grant funding. 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 12 months. As the Company focuses on commercialization of its technology any discretionary R&D and engineering projects are expected to be pursued in conjunction with grant funding or partner support.
To view the Company's management discussion and analysis and audited financial statements for the year ended August 31, 2013, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
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 that 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 August 31, 2013 and annual information form for the year ended August 31, 2013 each filed on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to risks associated with the commercialization of the CVWTM 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 CVWTM project and research activities; uncertainty related to the cost to build and operate CVWTM facilities; reliance on a small number of people, access to and cost of oil sands tailings necessary to carry out the CVWTM 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.
For further information, contact:
President & CEO
Tel: (403) 561-0439
Tel: (416) 577-9927
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