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Market: AIM
Sector: General Mining - Rare Earth Minerals
EPIC: TXR
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Titanium Resources
titaniumresources.com
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 historically accounted for over 65 per cent of the exports of Sierra Leone.
Full Titanium Resources profile here
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Titanium Resources raises £15.1 million for Sierra Rutile mine

16th Nov 2009, 12:07 pm Titanium Resources raises £15.1 million for Sierra Rutile mine

Titanium Resources Group (AIM: TXR) has raised £15.1 million through an equity placing to increase production and processing capacity at its Sierra Rutile Mine in Sierra Leone.


The company placed over 151 million new shares at a price of 10 pence per share, representing a discount of more than 20% to its Friday’s closing price of 12.25 pence. The proceeds will be used to fund projects intended to increase production and processing capacity at its Sierra Rutile mine. About US$20 million will be used to build the Dredge D3, which will take 12 months and add 30,000 tpa (tonnes per annum) of rutile production in its first full year of operation.


Another US$2 million will be spent to upgrade processing equipment at the Dredge D1 Wet Plant to increase rutile recovery by 5,000 tpa and limonite recovery by 1,000 tpa, which will also take 12 months to complete.
The remaining proceeds will fund the completion of an upgrade of the company’s land plants to increase the processing capacity there to 280,000 tpa.


Titanium Resources said it was on track to achieve targeted production of 65,000 tonnes of rutile and 8,000 tonnes of zircon concentrate this year. Production is set to increase next year following the replacement of the bucket line on Dredge D1, which, combined with the commissioning of Dredge D3, is expected to provide a “healthy cashflow” for the company.


“The funds raised will assist us in delivering the strategy set out in the company's interim results to increase production levels at Sierra Rutile. We are focussed on realising the significant value that exists in the company given the infrastructure currently in place and the world class nature of the Sierra Rutile deposit,” said Chief Executive of Titanium Resources John Sisay.


Shares in the company declined 10% to 11 pence on the news.

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