29 Dec 2010 07:00
Titanium Resources Group
Final Resolution of Loan Dispute with the Government of Sierra Leone
29 December 2010: Titanium Resources Group ("TRG" or "the Company") today announces the full resolution of its dispute with the Government of Sierra Leone (the "Government") regarding funds loaned by the Government to TRG's subsidiary, Sierra Rutile Limited ("SRL").
Following the announcement on 7 October 2010 of an agreement in principle to resolve the loan dispute, the Government has now formally withdrawn its request for the payment by SRL of all accrued interest plus the accrued balance and capital interest owing. Further, the Government acknowledges that no event of default or potential event of default is outstanding, and that it has no claims regarding any prior events of default which may have occurred.
Discussions with the Government regarding a potential debt-for-equity swap are ongoing, however the Board is also considering a number of other options to reduce the Group's outstanding debt level.
John Sisay, CEO of TRG, commented,
"I would like to thank the Government of Sierra Leone for the support that they have shown TRG and expect that our agreement will form the basis for a long-term and mutually beneficial partnership. We can now focus all of our efforts on the implementation of the first phase of improvements identified in our ongoing operations review, as well as the continued identification of additional measures to further increase production and operational efficiencies."
ENDS
For further information:
Titanium Resources Group
John Sisay, Chief Executive Officer
Telephone: +44 (0) 20 7321 0000
Arbuthnot Securities
Nominated Advisor & Broker
Richard Johnson / Hugh Field
Telephone: +44 (0) 20 7012 2000
Aura Financial
Michael Oke / Andy Mills
Telephone: +44 (0) 20 7321 0000
Titanium Resources Group
Titanium Resources Group is a mining company with operations in the Republic of Sierra Leone. The Group is the country's largest private sector employer and produces rutile and ilmenite for use in industrial applications. The Group's operations have historically accounted for over 65 per cent of the exports of Sierra Leone.