TXR Titanium Res

 

TIDMTXR 
 
RNS Number : 5447C 
Titanium Resources Group Ltd 
16 November 2009 
 

The following replaces the Placing Announcement released at 07:05 under RNS 
Number 5437C 
 
 
The word "investors" has been added to the final sentence of the first paragraph 
after "from" 
 
 
 
 
 
 
Titanium Resources Group Ltd 
 
 
Placing to raise approximately US$25.0 Million (GBP15.1 Million) 
 
 
 
 
16 November 2009: Titanium Resources Group Ltd ("TRG" or the "Company"), 
operator of one of the world's largest natural rutile deposits, is pleased to 
announce that it has conditionally placed 151,200,000 new ordinary shares (the 
"Placing Shares") at a price of 10 pence per share to raise approximately 
US$25.0 million (gross) (GBP15.1 million) from investors (the "Placing"). 
 
 
It is intended that the net proceeds of the Placing will be used to fund 
projects intended to increase production and processing capacity at the 
Company's Sierra Rutile Mine as follows: 
 
 
  *  approximately US$20 million will be used to complete the construction of Dredge 
  D3, which the Company estimates will add 30,000 tonnes per annum of rutile 
  production in its first full year of operation. The Company estimates that it 
  will take approximately 12 months to complete and commission Dredge D3; 
 
 
 
  *  approximately US$2 million will be invested in upgrading Dredge D1 Wet Plant 
  processing equipment to increase rutile recovery by approximately 5,000 tonnes 
  per annum and ilmenite recovery by approximately 1,000 tonnes per annum. These 
  works are expected to take approximately 12 months to complete; and 
 
 
 
  *  the remaining proceeds will be used towards completing an upgrade of the 
  Company's Land Plants, with the aim of increasing the plant's processing 
  capacity to up to 280,000 tonnes per annum. 
 
Placing Shares have been conditionally placed with institutional and other 
investors in the UK and Europe by Arbuthnot Securities Limited and Mirabaud 
Securities LLP and in the US by Auerbach Grayson & Company (Arbuthnot's US 
affiliate).  The conditional placing in the US is being effected under the 
safe-harbour provisions of Rule 144A.An application has been made to London 
Stock Exchange plc, for the Placing Shares to be admitted to trading on 
AIM ("Admission"). 
The Placing is conditional on, inter alia, Admission becoming effective, which 
is expected to occur on 19 November 2009. The Placing Shares will rank pari 
passu in all respects with the Company's existing ordinary shares in issue. The 
Placing Shares will represent 39 per cent. of the Company's enlarged issued 
share capital.  Following Admission, the Company expects to have 385,864,075 
Ordinary Shares in issue. 
Outlook 
The Board is confident that the Company is on track to achieve targeted 
production of 65,000 tonnes of rutile and 8,000 tonnes of zircon concentrate in 
the year to 31 December 2009. Rutile production is expected to increase in 2010 
as a result of increased volumes following the recent replacement of the bucket 
line on Dredge D1 which continues to mine higher grade areas of the deposit. 
The commissioning of Dredge D3 will enable the Company to increase the 
utilisation of existing infrastructure at Sierra Rutile. When combined with the 
anticipated increased production from D1 these measures, once operational, 
should provide a healthy cashflow to the Company. 
 
 
John Sisay, TRG's Chief Executive Officer, commented: 
 
 
"The funds raised will assist us in delivering the strategy set out in the 
Company's interim results to increase production levels at Sierra Rutile. 
 
 
We are focussed on realising the significant value that exists in the Company 
given the infrastructure currently in place and the world class nature of the 
Sierra Rutile deposit." 
 
 
ENQUIRIES: 
 
 
Titanium Resources Limited 
John Sisay, Chief Executive 
Walter Kansteiner, Non-executive Chairman 
Tel: +44 (0) 207 321 0000 
 
 
Arbuthnot Securities Limited 
Nominated Adviser & Lead Broker to the Placing 
John Prior / Ed Burbidge 
Tel: +44 (0) 20 7012 2000 
 
 
Mirabaud Securities LLP 
Joint Broker to the Placing 
Peter Krens 
Tel: +44 (0) 20 7409 3494 
 
 
Aura Financial 
Michael Oke / Andy Mills 
Tel: +44 (0) 207 321 0000 
 
 
 
 
Titanium Resources Group Ltd 
Titanium Resources Group Ltd operates the Sierra Rutile mine in the Republic of 
Sierra Leone through its subsidiary Sierra Rutile Limited and produces rutile 
and ilmenite for use in industrial applications. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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