As for the titanium deal - is there any end user talks yet?
Tiomin has several letters of intent from end users.
They can't be going into a feas stage w/o some one taking a lok at the product and deciding if it may conform to thier requirements.
They have a bankable feasibility study complete and are awaiting mining permit approval. The 30 day public comment period is drawing to a close soon.
The heavy minerals industry is complex and closed mouth.
Not as closed mouth as you think, you can spend 1600 dollars for a years worth of information, or I can personally guarantee the price of Titanium, Zircon has increased and verified by National Lead, Millineum Organic, Huntsman Tioxide, the Japanese Titanium Council amongst other sources as well.
Given the increase in the minerals pricing this pastyear, you'd think that if the deposit was viable - that someone would have stepped up to the plate to run bulk samples and see if the product was useable.
A pilot plant was commissioned and the Titanium product exceeds commercial standards. As well roasting will enhance the ilmenite to a commercial grade as well.
Tiomin has negotiated with majors over the course of this year and I am not at liberty to publicly address those sources.
The PGD guys may be taking any $$ they can get and moving on to see if they can peddle TIO or some new venture.
The intent of the company is to obtain mining permits on Kwale, break ground for plant construction and optimize shareholder value whether that be selling the asset or developing the asset. I really dont care, the project will generate in excess of 70Mil Canadian per annum and probably more given the roasting plant will increase ilmenite product as well. The mine, Kwale has a 14 life exclusive of the other deposits which havent been valued. The 4 deposits contain 10% of the worlds titanium supply and am told companies within the industry are extremely interested in seeing the project move forward. The 136Mil feasibility study projects a minimum of 25% IRR on Titanium prices based in early 2000. The market is forcasting increase in Zircon feedstock of 10% or more before year end, and Kerr Magee is raising Pigment prices which are forcast to increase 25% within the next few years, which times well into the production phase at kwale. Also envisioned is development of either one of the 2 deposits in year 7 thus adding to further asset development.
Obviously with Barrick owning 20% it as well adds a dimension to the possible financing solutions if not with Barricks personal involvment, possibly barricks instutional clients.
Regards
George |
