04:22:52 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Titanium Corp Inc
Symbol TIC
Shares Issued 79,967,698
Close 2017-11-21 C$ 1.33
Market Cap C$ 106,357,038
Recent Sedar Documents

Titanium spends $800,000 on R&D in fiscal 2017

2017-11-21 20:40 ET - News Release

Mr. Scott Nelson reports

TITANIUM CORPORATION REPORTS FISCAL YEAR END RESULTS, AND ANNOUNCES ANNUAL GENERAL MEETING DATE

Titanium Corp. Inc. has released its results for the fourth quarter and fiscal year ended Aug. 31, 2017. The company is also pleased to announce that it will hold its annual general and special meeting in Toronto on Tuesday, Feb. 13, 2018, at 10 a.m. The record date for shareholders to receive notice and be entitled to vote at the meeting is Dec. 28, 2017.

The company has made excellent progress on commercialization over the past year. The company is now working with Canadian Natural Resources Ltd. on an estimated $10.2-million engineering design project for implementation of its CVW technology at Canadian Natural's Horizon site. To finance the project, government grant funding from ERA (Emissions Reduction Alberta) and financing from Canadian Natural have been committed for up to $5.0-million and $3.7-million, respectively. Over the year, a number of new federal and Alberta funding programs have been announced, and the company plans to apply for future funding as these programs become available. The company also continues to test the application of its technology to additional areas where it has potential to reduce environmental impacts and add value.

"Our company has been working closely with industry and government, making excellent progress toward commercialization over the past year. Work is now well under way on engineering design for deployment of our technology at the Horizon site," commented Scott Nelson, Titanium's president and chief executive officer. "We wish to sincerely thank Canadian Natural and ERA for their confidence in our company and for their significant funding contributions to engineering design."

The following highlights a number of the company's accomplishments recently and during the year:

  • On Oct. 19, 2017, the company announced that the company and ERA had signed a contribution agreement whereby ERA will fund up to the lesser of $5-million or 50 per cent of the cost of the engineering design project for implementation of Titanium's CVW technology at Canadian Natural's Horizon site. With the ERA contribution, the estimated $10.2-million project is fully funded.
  • On Oct. 6, 2017, the company announced that Mossco Capital Inc., an affiliated Canadian resident corporation controlled by Moss Kadey, and David Macdonald, exercised in full its 750,000 non-transferable common shares purchase warrants of Titanium at a price of $1.35 per share for total proceeds to the company of $1,012,500.
  • On Sept. 28, 2017, the company announced the signing of commitments by Titanium of $1.5-million and by Canadian Natural of up to $3.7-million to finance the engineering design project for implementation of Titanium's CVW technology at Canadian Natural's Horizon site.
  • On July 7, 2017, the Alberta government's ERA announced that the company had been selected as a successful applicant in ERA's methane challenge for up to $5-million of grant funding toward engineering design for a first commercial installation of the company's CVW technology at Canadian Natural's Horizon site. The engineering design is for an oil sands tailings treatment system that eliminates certain tailings streams while recovering bitumen, solvent and high-value minerals.
  • In July, the company became an associate member of the Resource Diversification Council (RDC) of Alberta. RDC is an industry-led organization which is dedicated to the promotion and development of energy diversification projects that will create new industries, jobs, revenues and long-term economic growth for Alberta.
  • In June, 2017, the company strengthened its management team to focus on the commercialization of CVW technology with the hiring of Niel Erasmus. Mr. Erasmus rejoined the company as vice-president, mineral sands, responsible for the engineering, construction, staffing and operations of mineral sands and concentrator facilities. Dr. Kevin Moran was promoted to executive vice-president and chief technology officer (CTO) of the company. In this role, Dr. Moran is responsible for developing and implementing the company's proprietary technologies, focusing where the company believes it can create the greatest value for its customers and shareholders.
  • In February, 2017, the company commenced a laboratory-scale testing program in partnership with industry, government, COSIA and an Alberta university research team to remove and recover bitumen from legacy pond tailings using the company's CVW technology. The program will test bitumen recovery effectiveness and the remediation performance of tailings after bitumen is removed. The program will assess the potential for larger-scale bitumen recovery to improve the remediation of pond tailings. Work is progressing well and is now expected to be completed during the first half of 2018.
  • On Dec. 19, 2016, the company successfully closed a fully subscribed $6.5-million rights offering. A portion of the proceeds, $1.0-million, was used to repay the company's outstanding loans in full. In addition to the support of shareholders, there was very strong participation in the rights offering by all of the company's board and management, increasing their direct ownership in the company at that time to 21.5 per cent from 16.4 per cent.
  • The company is continuing cash conservation programs including those under which executive officers receive a significant portion of their compensation in RSUs (restricted share units) and all directors have elected to receive their annual retainers and meeting fees in DSUs (deferred share units), to both conserve cash and further align themselves with shareholder interests.
  • Addressing climate change continues to be a priority of governments. Under Alberta's climate leadership plan, the price of carbon emissions increased to $20 per tonne in 2017 and will increase to $30 per tonne in 2018. The federal government announced a minimum pan-Canadian price on carbon emissions for all jurisdictions starting in 2018 at $10 per tonne and increasing by $10 per tonne per year to reach $50 per tonne in 2022.
  • The federal and Alberta governments announced a number of funding programs during the year designed to assist Canadian innovators in the commercialization of new technologies in key areas, including clean technology and clean resources. The company intends to apply and qualify for applicable programs as they become available. The new programs include the federal government's $1.26-billion Strategic Innovation Fund and $2.0-billion Low Carbon Economy Fund. The Business Development Bank of Canada and Export Development Canada announced programs totalling $1.4-billion over three years to support first-of-a-kind, capital intensive, commercial-scale clean technology projects. Alberta's ERA program, which the company has successfully accessed, has continuing funding rounds which are funded by Alberta's carbon levy. The Alberta investor tax credit, a new three-year, $90-million program has been created to encourage investments in smaller Alberta companies, including those involved in proprietary technology research, development and commercialization. The company has qualified as eligible for this program.

Financial overview

Titanium is focused on achieving long-term financial success by implementing its innovative CVW technologies in commercial operations at oil sands sites. The company is now working with Canadian Natural on engineering design for implementation of its technology at Canadian Natural's Horizon site. However, until commercial arrangements and investment decisions are made and facilities are constructed and are operating, the company expects to continue to incur losses.

Net loss: Net loss for the year ended Aug. 31, 2017, was $3.0-million, compared with a loss of $2.9-million for the year prior ended Aug. 31, 2016. The increase of $100,000 is related to the full amortization of the deferred finance costs upon settlement of the loan facilities in December of 2016. All other expenses were consistent with the prior year. For a development-stage company, the net loss was in line with expectations.

Research and development (R&D): For the year ended Aug. 31, 2017, expenses of $800,000 were higher by $100,000 with the corresponding period in 2016, due to increased staffing and the company's contribution toward the laboratory-scale testing program at an Alberta university research facility to remove and recover bitumen from legacy pond tailings using the company's CVW technology.

General and administrative (G&A): G&A expense was $1.8-million for the year ended Aug. 31, 2017, as compared with $1.9-million for the year ended Aug. 31, 2016, a $100,000 decrease primarily relating to reduced legal costs and fees related to shareholder mailings. G&A costs included $800,000 of non-cash, equity-based compensation for the year ended Aug. 31, 2017, consistent with fiscal 2016. With a focus on preserving cash, the company continued its non-cash compensation with equity in lieu of cash compensation plans for directors and officers during the current fiscal year.

Cash position: The company had $4.4-million in cash and cash equivalents at Aug. 31, 2017, compared with $600,000 at Aug. 31, 2016. The increase over the year ended Aug. 31, 2016, relates to the rights offering, raising $6.5-million in aggregate gross proceeds and using a portion of the proceeds to repay $1.0-million outstanding from the loan facility. On Oct. 6, 2017, the company received $1.0-million through the exercise of warrants issued in connection with the loan facilities which were exercised at a price of $1.35 per share and resulted in the issuance of 750,000 common shares of Titanium. The company has sufficient cash to finance its expenses, including the engineering design project commitment and its G&A costs, for the next fiscal year. Outstanding stock options and share purchase warrants that are due to expire during 2018 may provide further cash proceeds for the company

To view the company's management discussion and analysis and audited financial statements for the year ended Aug. 31, 2017, please visit its website or SEDAR.

The company also announces the appointment of Jessica Brown as corporate secretary of the company. Ms. Brown currently practises corporate and securities law at Burnet, Duckworth & Palmer LLP. Ms. Brown will replace Kelsey Clark, who has been the company's corporate secretary since January, 2013. Ms. Brown's appointment is subject to the approval of the TSX Venture Exchange.

About Titanium Corp. Inc.

Titanium's CVW technology provides sustainable solutions to reduce the environmental footprint of the oil sands industry. The company's technology reduces the environmental impact of oil sands froth treatment tailings while economically recovering valuable products that would otherwise be lost. CVW 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.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.