Argex Titanium Inc.

Argex Titanium Inc.

June 10, 2015 16:34 ET

Argex to Withdraw Preliminary Short Form Prospectus and Provides an Update on Plan and Budget

MONTREAL, QUEBEC--(Marketwired - June 10, 2015) - Argex Titanium Inc. (TSX:RGX)


This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US. Securities Act") or any state securities laws and may not be offered or sold within the United States or to US. Persons unless registered under the US. Securities Act and applicable state securities laws or an exemption from such registration is available.

Argex Titanium Inc. (TSX:RGX) ("Argex" or the "Corporation"), Argex announces that as a consequence of recent market activity and conditions, it will not be proceed with the offering of Units under short form prospectus disclosed in its press release dated June 1st, 2015.

As of June 10th, 2015, Argex had a balance of cash and cash equivalents of approximately $1 825 Million. Argex shall implement a new budgetary plan that includes cost cutting measures such as termination of employees, reductions in salaries and suspension of research and development activities allowing available funds to be specifically allocated to value creating activities. Argex is also considering its alternatives with respect to some or all of its mineral claims as an additional cost saving measure.

Argex is actively discussing with several strategic partners to source the financing it needs to continue its objectives. Argex plans to leverage its assets in place, which includes a strong technology that produces high quality product, an industry leading projected cost structure, extensive due diligence packages endorsed by leading investors and lenders and supportive industry partners.

Argex will continue to seek additional financing for the Front End Engineering and Design (the "FEED/FEL3") for the construction of Argex's first commercially sized TiO2 plant in Valleyfield, Quebec. The Corporation also intends to pursue other strategic alternatives such as joint ventures and licenses instead of (or in parallel to) building its own facility. A royalty, service and technology transfer model is applicable especially in the case of the multi-plant opportunities and moves the corporation closer to revenues. There can be no assurance that Argex will be successful in its efforts in that respect.

"Argex intends to advance toward a complete solution for strategic investors willing to enter or grow market share in the TiO2 industry. The completion of the FEED/FEL3 remains a valuable tool in this respect. Always having in mind value creation for its shareholders, we believe that the decisions taken today were necessary to achieve our goal", commented Roy Bonnell, President and CEO of Argex.

About Argex Titanium

Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications. The Corporation's unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods. The Corporation's primary near term goal is to rapidly advance toward a 50,000 tonne per annum production module as a first step in its goal to transform the 5.7 million tonne per annum TiO2 industry.

Forward-Looking Statements

This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding future plans, costs, objectives or performance of Argex, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" "target" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Argex will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Argex's control. These risks, uncertainties and assumptions include, but are not limited to, the terms of the Offering, the successful completion of the Offering, the Corporation's anticipated use of proceeds and the expected timing for closing of the Offering as well as those described under "Risk Factors" in Argex's Annual Information Form for the fiscal year ended December 31, 2014, which is available on SEDAR at; they could cause actual events or results to differ materially from those projected in any forward-looking statements. Argex does not intend, nor does Argex undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

Contact Information