Wednesday, 23 May 2012

Argex provides corporate update as management snaps up stock

Argex Mining (CVE:RGX)(OTCBB:ARGEF) late Tuesday gave a corporate update and financial highlights.
The company has recently transitioned from a mining exploration company to a near-term producer of titanium dioxide, iron and vanadium pentoxide from assets in Quebec.

Late last year the company acquired a 50.1 percent stake in Canadian Titanium Ltd., a private company which owns the process and underlying patents for the recovery and production of titanium dioxide from titanium-bearing ore.

At its plant in Mississauga, Ontario, the company said that the scale-up is progressing extremely well. The production has now
reached 3 kg/day of high-purity titanium dioxide from 0.3 kg/day, 1,000-percent scale-up to date.

The increase in production is attributable principally to ongoing refinements in the treatment and purification process that will ultimately find their way into a full-scale industrial production facility.
The expanded pilot plant is expected to produce at least 10kg/day of high purity titanium dioxide by mid-June.

"We have experienced delays in the delivery of certain pieces of equipment for the larger-scale pilot plant, which has not prevented us from scaling-up ten-fold," Argex’s chief operating officer and VP of technology Enrico di Cesare said.
"We are anxious to receive the last items to complete the promised 3,000 percent increase."

In terms of finances, Argex said its 2011 working capital was up just over three-fold at $5.36 million and as at December 31, it had cash and short-term investments of $4.1 million, up from $2.2 million at the end of 2010.

In addition, for the year ended December 31, 2011, Argex converted 27,233,001 warrants, broker warrants and options to common shares. This resulted in cash to the corporation of $10,381,397.

"Our financial position has improved dramatically," Argex’s chief financial officer Mark Billings said.

"The corporation’s working capital and cash position have increased substantially while our shareholdings on a fully-diluted basis have remained the same."

Indeed, management at the company has been snapping up shares, with president and CEO Roy Bonnell acquiring 30,000 shares during May, and director Mazen Haddad pickingh up 200,000 shares in the last two months.

"Argex continues its inevitable march towards production assisted by the addition of credible partners, board members and management," Argex's president and CEO Roy Bonnell said.

"Our focus continues to be on adding value by reducing the risk associated with the project in the most effective and non-dilutive way possible for our shareholders."

Over the past year, the company announced new key board members as well as acquiring additional claims at its Lac Brûlé property.

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