SRX.L Regulatory News (SRX)

21 Dec 2005 07:00

Titanium Resources Group Ltd21 December 2005 Titanium Resources Group ("TRG" or "the Group") to Acquire Rotifunk Mineral Sands Prospect in Sierra Leone for US$120,000 21 December, 2005: TRG announces that it has entered into an agreement withGondwana (Investments) S.A. ("Gondwana") to acquire the Rotifunk mineral sandsprospect located in Sierra Leone for a consideration of US$120,000 cash payableon completion, subject to satisfactory due diligence by TRG. Gondwana is aprivate company which is wholly owned by Mr. Jean Raymond Boulle. Mr. Boulle isa related party and holds a 43.6% interest in TRG. The purchase pricerepresents Mr. Boulle's approximate expenditures on the Rotifunk mineral sandsprospect over the period 2002-2005. Although not required by the AIM Rulessince this proposed acquisition represents less than 5% of any of the AIM classtests, the Directors have consulted with TRG's nominated adviser and considerthe terms of the transaction to be fair and reasonable as far as TRG'sshareholders are concerned. The Rotifunk mineral sands prospect is the second largest known mineral sandsdeposit in Sierra Leone (after TRG's Sierra Rutile mine). It is located 65 kmsoutheast of Freetown and lies approximately 40 km northwest of the SierraRutile mine. Records of work undertaken by both Bayer-Preussag and Hazcare haveprovided inferred mineral resource estimates of 207 million tonnes at 0.49%rutile and 163 million tonnes at 0.48% rutile, respectively. Exploration workundertaken in 2003-2004 by Gondwana has identified 170 million tonnes ofinferred mineral resource at 0.70% rutile, 0.84% ilmenite and 0.06% zircon. Following acquisition of the Rotifunk prospect, TRG will evaluate its potentialto further augment Sierra Rutile's projected production levels. Selective miningof high grade areas combined with maximum utilisation of existing processinfrastructure at Sierra Rutile will form the focus of investigations into themost effective means of economically mining this prospect. Walter Kansteiner, Chairman of TRG, said: "Today's announcement underlines an element of the Group's stated strategy, setout at the time of our IPO in August this year, to identify new resources andevaluate potential opportunities for acquisition of further mineral propertiesin Africa. The Rotifunk prospect represents a low cost resource acquisitionopportunity for TRG and a possible supplement to the Group's main operations atthe nearby Sierra Rutile mine. If the prospect is deemed viable followingfurther evaluation by TRG, it could represent a further source of production forthe Group." EndsFor further information TRGWalter Kansteiner, ChairmanTel: +44 (0) 207 321 0000 Aura FinancialMichael OkeAndy MillsTel: +44 (0) 207 321 0000 This press release has been issued by TRG and is the sole responsibility of thecompany. This press release does not contain or constitute an offer orinvitation to purchase or subscribe for any securities of TRG and should not berelied on in connection with any decision to purchase or subscribe for any suchsecurities. The securities referred to herein have not been and will not be registered underthe U.S. Securities Act of 1933 and may not be offered or sold in the UnitedStates absent registration under the Securities Act or an available exemptionfrom it. Notes to Editors Titanium Resources Group Titanium Resources is the holding company of a group of companies that areengaged in the mining, marketing and exploration of mineral resources. The Groupowns two mining operations in the Republic of Sierra Leone - the Sierra RutileProject and the SML Bauxite Project. Both mines operated for over 15 years untiloperations were suspended in 1995. The projects accounted for 75 per cent ofthe exports of Sierra Leone. The Sierra Rutile Project will employ conventional dredging and processingmethods to produce mineral sands in the southwest of Sierra Leone, where itsproduction previously represented approximately 30 per cent of the world'sannual supply of natural rutile. Natural rutile is a high titanium-bearingfeedstock employed in the manufacture of titanium dioxide (TiO2) pigments thatare used in paint, plastics, paper and pharmaceuticals and the production oftitanium metal and welding rods. In close proximity to the Sierra Rutile mine is the SML Bauxite Project whichsuccessfully mined bauxite in the Mokanji area for over 30 years prior to thesuspension of operations in 1995. Bauxite from the SML bauxite mine is premiumgrade metallurgical bauxite which is the primary feedstock used in theproduction of aluminium. Both projects will employ proven mining and processing techniques and wereprofitable operations in the past. Rutile and bauxite from this region are bothrecognised for their high quality. The Group plans to restart operations at eachmine in the first quarter of 2006. This information is provided by RNS The company news service from the London Stock Exchange