TORONTO, Jan. 27 /CNW/ - Titanium Corporation Inc. (the "Company") (TSX-V: TIC) today released its financial results for the three month period ended November 30, 2008.
HIGHLIGHTS: - Based on encouraging progress from a number of laboratory based test results, the Company proceeded with scoping and contracting a number of further R&D programs with external research firms. - A comprehensive review and update of the strategic business plan reconfirmed the research and development approach being undertaken by the Company is appropriate. - Expenses increased to $1.271 million from $0.958 million in the first quarter of fiscal 2008 due to higher R&D activities and administrative costs; and - The Company remains in a strong financial position with $19.298 million in cash and short-term investments (including $3.552 million in restricted cash).
Scott Nelson, the Company's President and Chief Executive Officer stated "We continue to make steady progress. During the quarter, management and the Board of Directors conducted a comprehensive review and update of our strategic business plan reviewing technical progress, outcomes, markets and business conditions. The review reconfirmed that the research and development approach we are undertaking is appropriate." He also commented that "Our bitumen research and development program has provided encouraging results allowing us to move forward to the next phase which is continuous bench scale testing."
Research & Development Update - The research and development ("R&D") program is being managed by the Company's in-house experts in minerals and oil sands research in conjunction with leading independent research firms. During the quarter, the technical programs were focused on the challenges of removing residual bitumen from the heavy minerals and recovering bitumen from the tailings stream.
Bitumen Removal and Recovery - Based on encouraging progress from a number of laboratory based test results, the Company proceeded with scoping and contracting a number of further R&D programs with external research firms. A continuous bench scale testing process has been designed, equipment requisitioned and work is expected to commence in early 2009. In parallel with the core research programs, a number of projects were scoped and contracted in related areas including water treatment and reuse, and solvent recovery.
Minerals Concentration and Separation - The minerals research is substantially completed. Testing of prospective new technologies to further refine the process continues at the Regina facility. The Company also signed a contract with a large international research organization that will review and refine the work already completed at the Regina facility.
Expenses - Expenses increased to $1.271 million from $0.958 million in the first quarter of 2008 due to higher administrative costs and R&D activities. Increased administration costs reflect the timing of a performance bonus and the addition of senior management during the latter part of fiscal 2008.
Research and development costs also increased in the first quarter. The increase in outsourced R&D is the primary reason for the change. A portion of these outsourced R&D costs are being funded by the Alberta Government under the provisions of the Energy Innovation Grant.
Cash Position - The Company is in a strong financial position with $19.298 million in cash and short-term investments (including $3.552 million of restricted cash) at November 30, 2008, compared to $20.589 million (including $3.524 million of restricted cash) at August 31, 2008. The operations, R&D program and capital expenditures are financed from current cash resources. This level of cash should be sufficient to fund the Company's share of the R&D program over the next two years; however, the cost of future pilot work is not known at this time. Assuming the R&D program is successful, external financing will be required to commercialize the technology.
To view the Company's Management's Discussion and Analysis and Financial Statements for the quarter ended November 30, 2008, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc. -------------------------------
Titanium Corporation Inc. is a Canadian company developing a commercial process to maximize the inherent value in the waste material contained in oil sands tailings in the Fort McMurray, Athabasca region by integrating the recovery of heavy minerals and bitumen. This technology would be applied to all mined oil sands operations delivering environmental benefits with the objective of creating a new sustainable industry for Canada. Titanium Corporation Inc. shares trade on the TSX.V under the symbol TIC. For more information, please visit www.titaniumcorporation.com.
Disclosure regarding forward-looking statements -----------------------------------------------
We direct you to our risks and uncertainties statements more particularly described and updated in Titanium Corporation's Management's Discussion and Analysis filed for the period ended November 30, 2008, on SEDAR (www.sedar.com). Most notably these risks include, but are not limited to: risks associated with the advancement of research and development programs including the successful commercial recovery of bitumen and heavy minerals and operating or technical difficulties in connection with development activities. All subsequent written and oral forward-looking statements are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.