SRX.L Regulatory News (SRX)

2 May 2007 07:01

Titanium Resources Group Ltd02 May 2007 NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES Titanium Resources Group Ltd Signs Agency Agreement for The Placing of New Common Shares to Raise up to £17.6 million 2 May 2007: Titanium Resources Group Ltd ("TRG" or "the Company") announces thesigning of an Agency Agreement between TRG and BMO Nesbitt Burns, Inc. andArbuthnot Securities Limited to place up to 27,077,000 new common shares ("thePlacing Shares") with institutional investors at a price of 65 pence per PlacingShare raising approximately £17.6 million (US$35.2 million) before expenses ("the Placing"). The Placing represents approximately 11.6 percent of theenlarged issued share capital of the Company of 234,278,553 common shares. The net proceeds of the Placing will be used for general corporate purposes andgrowth initiatives including: approximately $25 million on upgrading the powerhouse at the Sierra Rutile mine to Heavy Fuel Oil; the expansion of SierraRutile's dry plant capacity for the increased production from the ongoing DredgeD2 and D3 expansion projects; exploration on the prospective areas withinexisting tenures but outside current mine plans at Sierra Rutile and SierraMinerals; and exploration of the Turners' Peninsular deposit acquired in 2006. Application has been made to the London Stock Exchange for the Placing Shares tobe admitted to trading on AIM ("Admission"). The Placing Shares will rank infull for all dividends or other distributions made, paid or declared afterAdmission and pari passu in all other respects with the existing common shares.The Placing is conditional on, inter alia, Admission becoming effective, whichis expected to occur on 8 May 2007, when dealings in the Placing Shares areexpected to commence. THE SECURITIES REFERRED TO IN THIS RELEASE WILL NOT BE REGISTERED UNDER THEUNITED STATES SECURITIES ACT OF 1933 OR THE LAWS OF ANY STATE AND MAY NOT BEOFFERED OR SOLD IN THE UNITED STATES ABSENT SUCH REGISTRATION OR AN APPLICABLEEXEMPTION FROM REGISTRATION REQUIREMENTS. For further information: Len Comerford / Walter KansteinerTitanium Resources Group Ltd.Telephone: +44 20 7321 0000 Michael Oke / Andy MillsAura FinancialTelephone: +44 20 7321 0000 Nominated AdviserJohn WilkesNabarro Wells & Co. LimitedTelephone: +44 20 7710 7400 Graham Swindells/Richard DunnArbuthnot SecuritiesTelephone: +44 20 7012 2000 William SmithBMO Capital MarketsTelephone: +44 20 7664 8120 This information is provided by RNS The company news service from the London Stock Exchange