Tiomin Resources Inc.

Tiomin Resources Inc.

February 01, 2007 09:24 ET

Tiomin Agrees to Extend Deadline for ATW 1st Payment to February 2, 2007

TORONTO, ONTARIO--(CCNMatthews - Feb. 1, 2007) - Tiomin Resources Inc. ("Tiomin" or the "Company") (TSX:TIO) announces that it is continuing to negotiate and finalize the formal agreement with ATW Venture Corp. ("ATW") providing for the transaction announced on January 26, 2007. Tiomin and ATW have agreed to extend the deadline for execution of a formal agreement and for ATW to make the initial US$2.5 million payment to Tiomin from January 31 to February 2, 2007.

On January 26, 2007, Tiomin entered into a letter of intent with ATW providing for the grant to ATW of an option to acquire up to a 50% interest in Tiomin's Kenyan mineral sands projects (the "Kenya Projects"), including the Kwale project, for US$35 million. In addition, the letter of intent provides for ATW to have an option to acquire a 50% interest in Tiomin's Tanzanian exploration projects for US$3 million. The letter of intent provides that ATW has the option to acquire a 10% interest in the Kenya Projects by paying US$2.5 million on or before January 31, 2007 (now February 2, 2007), and an additional US$4.5 million (for a total of US$7 million) on or before February 28, 2007. ATW would have the further option to increase its interest in the Kenya Projects to 50% by paying an additional US$28.0 million on or before April 3, 2007.

Certain of the information contained in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those respect to the prices of rutile, zircon, ilmenite, estimated future production, estimated costs of future production and the Company's sales policy, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any forecast results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual prices of rutile, zircon and ilmenite, the actual results of current exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's documents filed from time to time with the Ontario Securities Commission.

Contact Information

  • Tiomin Resources Inc.
    Jean-Charles Potvin
    (416) 350-3776, ext. 227
    Tiomin Resources Inc.
    Laurie Gaborit
    Investor Relations
    (416) 350-3776, ext. 222
    Email: lgaborit@tiomin.com
    Website: www.tiomin.com