SRX.L Regulatory News (SRX)

25 Aug 2005 09:23

Titanium Resources Group Ltd25 August 2005 Titanium Resources Group ("TRG" or "the Group") raises $74m (£41m) via a Placing of 87,151,553 common shares at a price of 47p per common share ("the Placing") and is admitted to AIM 25 August, 2005 (AIM: TXR.L) TRG announces that dealings in its common shares have commencedfollowing completion of the Placing and admission of its issued share capital totrading on the AIM market of the London Stock Exchange ("AIM"). The Group hasraised US$74 million (£41 million) before expenses and at the Placing price thecompany has a market capitalisation of US$158 million (£88 million). Walter Kansteiner, Chairman of TRG, said: "Our listing on AIM marks a new era for TRG and will provide access to a widerpool of capital to the benefit of the Group. We have a strong team and are onschedule to re-start production of high grade natural rutile and bauxite in thefirst quarter of 2006." "The strong demand for the Placing amongst institutions is recognition for ourhigh quality assets and heralds a renewed confidence in the ability of TRG toagain take its place as an important provider of high quality raw material toworld markets." Expected Timetable Admission and dealings in the Common Shares commenced on AIM 8.00 a.m. 25 August 2005CREST accounts credited in respect of Depositary Interests 25 August 2005 Where applicable, dispatch of definitive share certificates in respect of the 2 September 2005Placing Shares to Placees by no later than Placing Statistics Placing Price 47p per shareNumber of Placing Shares 87,151,553Number of Common Shares in issue following the Placing 187,201,553Percentage of the enlarged issued share capital subject to the Placing 46.6 per centEstimated net proceeds of the Placing £37 millionMarket capitalisation following Admission at the Placing Price £88 millionNumber of Options outstanding on Admission 9,905,962ISIN number for the Common Shares VGG889921059 Ends For 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 of theexports 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. Ilmenite, a lower titanium-bearing feedstock,is also produced for similar markets and in the production of synthetic rutile.In addition, there is potential for additional revenue, given acceptable marketconditions, from production of zircon, which is utilised in the production ofrefractories, ceramics and zirconium chemicals. 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