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 subscription agreements.
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 foreign
investment.
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.
Forward-Looking Statements
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.