During the first quarter of 2021, the joint project team for the Company and Canadian Natural Resources Limited (“Canadian Natural”) continued work towards the implementation of Titanium’s Creating Value from Waste™ (“CVW™”) technology at Canadian Natural’s Horizon oil sands site (the “Project” or the “CVW™ Horizon Project”). The Project work included finalizing engineering reviews of the concentrator facility, engineering redesign of the minerals and transload facilities and updating engineering cost estimates. The results of the engineering work are currently under review, including Project cost estimates, economic analysis and environmental benefits.
“The first quarter of 2021 was a very active period marked by the completion of a large minerals engineering program, the signing of agreements with government funding agencies and our partner, and as well as the collection of a number of grant milestone payments,” commented
Highlights for the three months ended
- In
January 2021 , the Company andNatural Resources Canada (“NRCan”) signed a Non-Repayable Contribution Agreement (“the NRCan Agreement”), under the Clean Growth Program, for$1.96 million of funding for eligible expenditures of a work program for the periodApril 1, 2020 toMarch 31, 2021 , as part of the engineering phase of the CVW™Horizon Project . The Clean Growth Program is aGovernment of Canada collaborative approach to advance clean technologies toward commercial readiness, so that natural resources operations can better reduce their impacts on air, land, and water, while enhancing competitiveness and creating jobs. The work program includes validation engineering for the Project facilities, including the concentrator plant and tailings thickener, minerals plant and transload facility, and associated Class 3 capital cost estimates. The 2020 engineering phase was conducted jointly by Titanium and Canadian Natural, under the 2020 Project Coordination Agreement (“2020 PCA”) announced inDecember 2020 , whereby costs and grant funding is shared 30% and 70%, respectively. During the first quarter of 2021, the engineering work focused on minerals sample testing, minerals process engineering work to validate the resizing of the minerals plant and the front-end engineering design of a transload facility for rail shipment of minerals products. - In
March 2021 , the Company received the first milestone funding of$392,000 less a 10% holdback, under the NRCan Agreement for the engineering phase of the Project, with respect to the periodApril 1, 2020 toDecember 31, 2020 . - Also in
March 2021 , the Company received the first milestone funding of$800,000 less a 20% holdback, from Emissions Reduction Alberta (“ERA”) for the engineering phase of the Project. This ERA payment is the first under the$5 million ERA Contribution Agreement announced inSeptember 2020 . The payment is with respect to 2020 joint Project costs totaling$5.4 million incurred by Titanium and Canadian Natural (shared$1.6 million and$3.8 million respectively), with a net payment of$640,000 also allocated on a 30% and 70% basis under the 2020 PCA. - Subsequent to quarter end, in
April 2021 , the Company announced signing of a$10 million Project Funding Agreement (“PFA”) with Sustainable Development Technology Canada (“SDTC”). The SDTC funding award was previously announced inDecember 2020 and was subject to the successful negotiation of the PFA. The effective date for the SDTC funding isDecember 1, 2020 . The PFA allows for advances of funding for eligible costs, paid in advance of each milestone, whereby the Company is required to complete required reports at each milestone, as the Project advances. SDTC will retain a 10% holdback from each advance until the Project is completed. - In
April 2021 , the Company received the first SDTC milestone advance payment of$815,264 less a 10% holdback. - The Company and Canadian Natural signed a 2021 Project Coordination Agreement ("2021 PCA") which governs the
January 1, 2021 toApril 30, 2021 engineering phase of the Project (the "2021 Program"). Announced inApril 2021 , the 2021 PCA sets out the rights and responsibilities of Titanium and Canadian Natural. The 2021 Program includes completion of validation and optimization of the overall plant design and the updating of the capital and operating cost estimates for the concentrator plant, tailings thickener and associated utilities. The 2021 Program also includes the engineering redesign and updating of the capital and operating cost estimates for the mineral separation plant, associated utilities and the minerals product transload facility. The PCA provides that Canadian Natural and Titanium shall be responsible for 70% and 30%, respectively, of the total cost of the 2021 Program and the government grant proceeds related to the 2021 Program shall be shared between the parties on the same ratio. The 2021 PCA provides that ownership of the 2021 Program and any intellectual property rights developed during the program shall be jointly owned pro rata in accordance with each party's contribution. The 2021 PCA also sets out the management structure, responsibilities, administration and certain other customary terms and conditions for the conduct of the 2021 Program. - In addition to advancing the Project with Canadian Natural and securing additional government funding for the Project, the Company continues to focus on protecting its balance sheet by reducing costs and conserving cash by reducing compensation, travel and other discretionary expenses. All the compensation paid to Company directors and a portion of management compensation is settled through the Company’s equity-based plans instead of cash compensation.
Titanium has not received funding from the various government programs designed to support companies and workers during the COVID-19 pandemic in 2020 and 2021. As a development stage company without revenues, Titanium was not eligible for these government programs.
FINANCIAL OVERVIEW
Titanium is focused on achieving long-term financial success by implementing its CVW™ technologies in commercial operations at oil sands sites. The Company is working with Canadian Natural on the engineering phase of the Project including engineering validation, optimization, economics and planning for the potential implementation at Canadian Natural’s Horizon site. However, until these Project activities are completed to the satisfaction of the parties, the commercial arrangements and investment decisions are made, and the facilities are constructed and operating, the Company expects to continue to incur losses. Currently, quarterly losses are comprised of research and development (“R&D”), engineering costs, and general and administrative (“G&A”) expenditures. Changes in quarterly results are dependent on the level of commercialization, project activity, and the timing of payments related to project cost recovery.
Net Loss – For the three months ended
Research & Development – R&D spending in the current quarter consisted primarily of compensation for technical staff, on-going minerals testing and evaluations, optimization engineering work and updating of cost estimates. Project costs were higher by
General & Administrative – G&A expenses for the three months ending
Cash Position – The Company’s aggregate cash position was
With cost reduction initiatives and receipt of government grant funding in the second quarter of 2021, the Company believes its current cash position will support it through the next 12-month period for current operations. Once a decision to proceed with the next phase of the Project is made, the timing and amount of capital required will be evaluated for future cash requirements.
To view the Company’s management discussion and analysis and interim unaudited financial statements for the three month period ended
Annual Shareholder Meeting
The Company confirms that it will hold its annual and special meeting (the "Meeting") as a virtual only Meeting, via live audio online webcast at https://virtual-meetings.tsxtrust.com/1135 on
The Company notes that the Notice-and-Access Notification to Shareholders that was mailed to beneficial shareholders contained a reference to the Meeting time as
About
Titanium Corporation’s CVW™ technology provides sustainable solutions to reduce the environmental footprint of the oil sands industry. Our technology reduces the environmental impact of oil sands froth treatment tailings while economically recovering valuable products that would otherwise be lost. CVW™ recovers bitumen, solvents, heavy minerals and water from tailings, preventing these commodities from entering tailings ponds and the atmosphere: volatile organic compound and greenhouse gas emissions are materially reduced; hot tailings water is improved in quality for recycling; and residual tailings can be thickened more readily. A new minerals industry would be created commencing with the production and export of zircon, an essential ingredient in ceramics.
The Company’s shares trade on the TSX-V under the symbol “TIC”.
For more information, please visit the Company’s website at www.titaniumcorporation.com.
Disclosure regarding forward-looking information
This news release contains forward-looking statements and information within the meaning of applicable Canadian securities laws (collectively, "forward-looking information") that reflect the current expectations of management about the future results, performance, achievements, prospects or opportunities for Titanium, including statements relating to the occurrence and timing of future steps with respect to the CVW™
Forward-looking information, by its very nature, is subject to inherent risks and uncertainties and is based on many assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking information and that our business outlook, objectives, plans and strategic priorities may not be achieved. Macro-economic conditions, including public health concerns (including the impact of the COVID-19 pandemic and subsequent waves) and other geopolitical risks, the condition of the global economy and, specifically, the condition of the crude oil and natural gas industry including the volatility of global crude oil prices, other commodity prices and the decrease in global demand for crude oil as a result of the ongoing COVID-19 pandemic, and the ongoing significant volatility in world markets may adversely impact oil sands producers' program plans, including proceeding with an investment decision in further Project activities or any final investment decision with respect to commercialization, which could materially adversely impact the Company. Additional information on these and other factors are disclosed in our most recently filed management's discussion and analysis, including under the heading “Discussion of Risks”, and in other reports filed with the securities regulatory authorities in
In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things: the condition of the global economy, including trade, public health (including the impact of the COVID-19 pandemic) and other geopolitical risks, including the fact that any estimates of Project next steps, as well as the detailed engineering and construction period may be affected by the COVID-19 pandemic, condition of the global economy and commodity prices, in particular crude oil prices; the stability of the economic and political environment in which the Company operates; the success of the Project activities, including the expected assessment of engineering validation and optimization reviews for next steps as part of the Project activities; the ability of the Company to enter into commercial contracts with oil sands producers and to achieve commercialization of the CVW™ technology, including the anticipated scope of such commercial contracts; the ability of the Company to enter into commercial contracts with other strategic partners in relation to building and operating facilities, as required; the ability of the Company to retain qualified staff; the ability of the Company to obtain financing on acceptable terms, including available grant and financing opportunities from government programs and finalizing funding agreements for such government programs; the translation of the results from the Company's research, pilot programs, Project activities during the FEED, engineering validation and optimization and studies into the results expected on a commercial scale; the belief that the Company's technology will provide important environmental and economic benefits that will assist with the recovery of a resilient and sustainable energy industry in
The Company has not commercially demonstrated its technologies and there can be no assurance that our research, pilot programs, Project activities during the FEED, engineering validation and optimization and related studies will prove to be accurate nor that such commercialization efforts will be successful, as actual results and future events could differ materially from those expected or estimated in such forward-looking information. As a result, we cannot guarantee that any forward-looking information will materialize and we caution you against relying on any of this forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release describes our expectations as of
Neither the
For further information, contact:
President & CEO | Vice President Finance & CFO |
Tel: (403) 561-0439 | Tel: (403) 874-9498 |
Email: snelson@titaniumcorporation.com | jkaufield@titaniumcorporation.com |
Source:
2021 GlobeNewswire, Inc., source