Successful resolution of dispute with GOSL

 

TIDMTXR 
 
RNS Number : 9913T 
Titanium Resources Group Ltd 
07 October 2010 
 

                        Titanium Resources Group Limited 
        Successful resolution of dispute with Government of Sierra Leone 
7 October 2010: Titanium Resources Group ("TRG" or the "Company") is pleased to 
announce that it has reached an agreement in principle (the "Agreement") to 
resolve the dispute between its subsidiary, Sierra Rutile Limited ("SRL"), and 
the Government of Sierra Leone ("GOSL or "Government") which related to funds 
loaned by the GOSL to SRL. 
Under the terms of the Agreement, the Government will invest GBP13.6 million 
(EUR15.6 million*) of the SRL Loan into approximately 113.7 million new ordinary 
shares at an issue price of 12 pence per share, a 60% premium to TRG's closing 
share price on 6 October 2010.  Upon issue of these new ordinary shares, GOSL 
will own 22.8% of the Company's enlarged issued share capital.  The outstanding 
debt and accrued interest due to GOSL as at today's date will fall from EUR36.9 
million to EUR21.3 million (c.GBP18.6 million*), a 42.3% reduction (*based on a 
GBP:EUR exchange rate of 1.143 on 6 October 2010). 
John Bonoh Sisay, Chief Executive Officer, said: 
"The Company wishes to thank the Government of Sierra Leone for its positive 
approach in resolving this matter quickly and amicably.  This Agreement 
strengthens our partnership with the Government and ensures we are fully aligned 
in developing a strong SRL.  The Company can now focus its efforts on expanding 
production and developing its assets towards their considerable potential." 
On August 20, 2010, the Company announced that SRL and the GOSL were in a 
dispute over certain interest payments due to the GOSL on a loan made by the 
GOSL to SRL ("the SRL Loan").  Discussions between SRL, TRG, TRG's largest 
shareholder, Pala Investments Holdings Limited ("Pala"), and the GOSL have 
successfully resolved the matter, subject to the completion and signing of 
definitive documentation. 
Definitive documentation is expected to be executed in the course of the next 
few weeks, at which time, the new shares will be issued to the GOSL and any 
actual or alleged events of default under the SRL Loan will be cured and the SRL 
Loan will be in good standing. 
On issue of the new ordinary shares, the GOSL and Pala will be the Company's 
largest shareholders, holding approximately 22.8% and 23.0% of the Company's 
shares respectively.  Admission to trading of the new ordinary shares on AIM 
will be sought immediately after issue.  The Government's shareholding rights in 
SRL are unaffected by this Agreement. 
Further announcements will be made as appropriate. 
                                      ENDS 
For further information: 
Titanium Resources Group 
Wayne Malouf, Executive Chairman 
John Sisay, Chief Executive 
Tel: [phone] 
 
Arbuthnot Securities 
Nominated Advisor 
Richard Johnson / Hugh Field 
Tel: [phone] 
 
Aura Financial 
Michael Oke / Andy Mills 
Tel: [phone] 
 
Titanium Resources Group 
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 have historically accounted for over 65 per cent of the exports of 
Sierra Leone. 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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