This release is intended for distribution in Canada only and is not
intended for distribution to United States newswire services or for
dissemination in the United States.
MONTREAL, July 8, 2013 /CNW Telbec/ - Argex Titanium Inc. (TSXV: RGX) ("Argex") is pleased to announce that it has entered into letters of intent for a
$10 million non-brokered private placement with two subscribers:
Ressources Québec, a subsidiary of Investissement Québec, and a
U.S.-based investment fund manager, a current Argex shareholder. Each
subscriber will invest $5 million in connection with the proposed
private placement. Argex will issue a total of 9,756,098 common shares
to the two subscribers at a price of $1.025 per share, representing the
volume weighted average closing price of Argex's shares on the TSX
Venture Exchange for the 20 trading days prior to the date of signing
of the two letters of intent.
Roy Bonnell, President and Chief Executive Officer of Argex, commented,
"Ressources Québec, a subsidiary of Investissement Québec, has
indicated in this agreement its interest to participate in the future
financing of our first industrial-sized plant in Valleyfield, Québec.
Ressources Québec is one of Québec's most important financial resources
for such projects. We are very pleased to welcome its initial
investment in Argex. We are confident that both participants in this
private placement will play an increasingly important role as Argex
continues to advance towards production."
"The Québec government is proud to support this strategic investment
project, which will have substantial economic spin-offs for the
Montérégie region. Québec's prosperity depends on projects like this
one from Argex, which combine innovation and economic development,"
noted Élaine Zakaïb, Minister for Industrial Policy and the Banque de
développement économique du Québec. "This investment will enable Argex
not only to conduct its R&D in Valleyfield, but also to continue
expanding its operations there."
The private placement, which is expected to close in early August 2013,
will be effected pursuant to prospectus exemptions under applicable
Canadian securities legislation. The private placement is subject to
regulatory approval, including that of the TSX Venture Exchange, and to
various closing conditions, including the signing of definitive
The shares to be issued at closing will be subject to a four-month "hold
period" under applicable Canadian securities legislation and the
policies of the TSX Venture Exchange. There are presently 120,058,171
common shares issued and outstanding. Upon closing of the private
placement, there will be 129,814,269 common shares of Argex issued and
outstanding. No warrants will be issued and Argex will not pay any
commissions in connection with the private placement.
About Investissement Québec
Investissement Québec's mission is to foster the growth of investment in
Québec, thereby contributing to economic development and job creation
in every region. The Corporation offers businesses a full range of
financial solutions, including loans, loan guarantees and equity
investments, to support them at all stages of their development. It is
also responsible for administering tax measures and prospecting for
About Argex Titanium Inc.
ARGEX Titanium Inc. is a near-term producer of Titanium Dioxide (TiO2). With a primary goal of advancing rapidly towards production, Argex
has adopted a simple and low-risk strategy for the scale-up of its
proprietary process that allows it to produce high-purity pigment-grade
TiO2 directly from run-of-mine material. The closed-loop process is
environmentally friendly and produces minimal inert tailings.
Argex is pleased to have selected Valleyfield, Québec as the location
for its Research & Development centre and first industrial-sized
production facility. The location of the site can be viewed at Argex Valleyfield.
This news release contains statements that may constitute
"forward-looking information" or "forward-looking statements" within
the meaning of applicable Canadian securities legislation.
Forward-looking information and statements may include, among others,
statements regarding the future plans, costs, objectives or performance
of Argex, or the assumptions underlying any of the foregoing. In this
news release, words such as "may", "would", "could", "will", "likely",
"believe", "expect", "anticipate", "intend", "plan", "estimate" and
similar words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not be
read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether, or the times at or by
which, such future performance will be achieved. No assurance can be
given that any events anticipated by the forward-looking information
will transpire or occur, or if any of them do so, what benefits Argex
will derive. Forward-looking statements and information are based on
information available at the time and/or management's good-faith belief
with respect to future events and are subject to known or unknown
risks, uncertainties, assumptions and other unpredictable factors, many
of which are beyond Argex's control. These risks, uncertainties and
assumptions include, but are not limited to, those described under
"Risk Factors" in Argex's Management's Discussion and Analysis of the
Financial Condition and Results of Operations for the fiscal year ended
December 31, 2012, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from
those projected in any forward-looking statements. Argex does not
intend, nor does Argex undertake any obligation, to update or revise
any forward-looking information or statements contained in this news
release to reflect subsequent information, events or circumstances or
otherwise, except if required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Argex Titanium Inc.
Argex Titanium Inc.