Monday 16 September 2013

Argex Titanium puts to bed second $5 mln financing; raises $10 mln to advance production plans

Argex Titanium (CVE:RGX) has successfully raised $10 million in recent weeks, announcing today the closing of a second $5 million non-brokered private placement, this time with U.S. based investment fund manager and current shareholder. 
The first $5 million non-brokered private placement was closed in late August, with Ressources Québec, a subsidiary of Investissement Québec.
In this latest placement, the titanium dioxide development company issued a total of 4.88 million common shares at a price of $1.025 apiece, with no warrants issued. 
Shares of Argex advanced almost three per cent on Monday morning following the announcement, to $1.05 per share, as the company is now one step closer to being in the position of releasing its feasibility study results for its upcoming industrial-sized production plant. 
"We are very pleased the Investment Fund has taken this additional  position in our company," said president and CEO Roy Bonnell. "As they have indicated in this process their interest in participating in the project financing of the full scale production at the first industrial-sized plant in Valleyfield, Quebec, we are confident they will be a very important partner as we move forward."
The company, which is aiming to move quickly towards production, recently received conditional approval to move to the Toronto Stock Exchange main board from the more junior TSX Venture Exchange as it transitions to a near-term producer of titanium dioxide.
Argex has a proprietary mineral extraction process that allows it to produce high purity, or 99.8 per cent pure, pigment-grade titanium dioxide directly from run-of-mine material at its deposits. The company is working to scale up this closed-loop process, which is environmentally friendly and produces minimal inert tailings. 
It has chosen Valleyfield, Quebec as the location for its research and development centre, and the first industrial-sized production facility. 
Titanium dioxide is an inorganic substance characterized by brightness and very high refractive index, making it an ideal pigment in paints, plastics and paper. The junior Canadian resource company is developing the advanced stage La Blache titaniferous magnetite project, and also owns the Lac Brûlé high grade ilmenite and the Mouchalagane iron ore projects, which are all located on Quebec’s North Shore. 

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