Update

 

TIDMTXR 
 
RNS Number : 4135R 
Titanium Resources Group Ltd 
20 August 2010 
 

 
                          Titanium Resources Group Ltd 
                                     Update 
20 August 2010: Titanium Resources Group Ltd ("TRG" or "the Company") announces 
a revision to the estimate of full year production volumes from its Sierra 
Rutile mine, an update on the Dredge D3 project, and suspension of capital 
funding to its subsidiary, Sierra Rutile Limited ("SRL"), pending discussions 
with the Government of Sierra Leone ("GOSL") relating to the SRL/GOSL loan. 
 
As noted at the AGM in June 2010, production during the first half of the year 
was adversely affected by operating disruptions to Dredge D1 and the D1 wet 
plant.  The causes of these disruptions have been substantially corrected and 
production is steadily improving. For example, July 2010 production was up 13% 
over June 2010.  Based on an analysis of operations however, management projects 
that while SRL should meet the production target of 15,000+ tonnes of ilmenite 
in the current calendar year, the steadily increasing production rate is not 
sufficient to make up the production loss in rutile and zircon experienced 
earlier in the year. Rutile production for the seven months to the end of July 
2010 amounted to 37,164 tonnes and the production for the full year is now 
expected to be in the range of 64,000 to 70,000 tonnes. This year's Zircon 
production is expected to total approximately 9,100 tonnes. 
 
The GOSL claims that SRL has failed to make certain interest payments when due 
and therefore all principal and accrued interest under the GOSL Loan is 
technically due.  SRL disputes the claim on the basis that during and after an 
agreed moratorium on loan payments, the GOSL and SRL were in discussions 
regarding the GOSL Loan.  SRL has paid the amount of outstanding interest 
immediately requested by the GOSL and is in discussions with the GOSL regarding 
the GOSL Loan. SRL has made it clear that it is ready, willing and able to make 
all outstanding interest payments due if requested by the GOSL.  SRL and the 
GOSL have also agreed to discuss a range of matters of mutual interest. The 
Company is suspending further funding into SRL pending the successful conclusion 
of discussions with the GOSL. 
 
The Company has spent approximately US$150,000 of the approximately US$20 
million raised for Dredge D3. Most of the funds spent relate to design and cost 
analysis to determine ways to reduce capital costs and improve operating 
efficiency.  As a result, the Company is further considering alternatives which 
it believes may be more cost efficient to deliver the production increase. 
 
Commenting on today's announcement, Wayne Malouf, Executive Chairman of TRG 
said: 
 
"The causes of the reduced production have been addressed and production is 
steadily improving. The disagreement between SRL and the Government of Sierra 
Leone is unfortunate, but based on recent interaction with the Government, I am 
hopeful it can be resolved in short order. As the new Executive Chairman of TRG, 
I have begun a complete review of the business with the goal of making the 
changes necessary to turn the Group to profitability and maximize shareholder 
value." 
 
                                    --Ends-- 
 
For further information 
 
Titanium Resources Group 
Wayne Malouf, Executive Chairman 
John Sisay, Chief Executive 
Telephone: [phone] 
 
Arbuthnot Securities 
Nominated Adviser & Broker 
Richard Johnson / Hugh Field 
Telephone: [phone] 
 
Aura Financial 
Michael Oke / Andy Mills 
Telephone: [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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