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Gold/Mining/Energy : TITANIUM CORPORATION INC.- The Next Major Mining Play -- Ignore unavailable to you. Want to Upgrade?

To: chevalier who wrote (135)	11/3/1999 2:07:00 PM
From: Winzer	Read Replies (1) \| Respond to of 343

Taken from the Cape Breton Post: eserve Group visiting Sysco By John Campbell New Democrat MLA Frank Corbett is concerned that the lawyer representing Reserve Group in its bid for Sydney Steel also represented Global Steel in its failed attempt to buy the plant. Reserve Group, based in Ohio, apparently broke the secrecy agreement required of bidders by the ABN AMRO bank when it went public Monday with a suggestion that it was pulling out of the process after getting a look at the Sysco books. However Reserve representatives were on the plant site Tuesday and more were expected to arrive today to begin the due diligence process that sources say will also be undertaken by several other firms contacted by the Netherlands investment bank which is trying to conclude a sale by Dec. 31. A Canadian Press report quoted Ottawa lawyer Stuart Hendin as saying that Ohio-based Reserve wants to operate the mill and build up the order book before it buys the place. The report has Henden referring to “serious misgivings” about the plant's order book but talks of having another company, Rail Associates, market Sysco rails if Reserve's bid is successful. This is still the biggesr NR in this regard! Viability study to be conducted with Hoogovens Sysco's saleability may have gone up a notch or two with word of a study that will examine a major mineral deposit. NAR Resources in conjunction with the Titanium Corporation of Canada has agreed to proceed with a viability study with Hoogovens Technical Services, a wholly owned subsidiary of Royal Hoogovens, a major Dutch steel and aluminum producer. Royal Hoogovens have recently announced a merger with British Steel PLC, making the resultant company the world's third largest steel producer. Titanium Corporation jointly with NAR is developing what is believed to be a world class mineral sands deposit containing the titanium minerals; rutile, ilmenite, and leucoxene as well as magnetite and zircon. The deposit is situated near Truro. The viability study is focusing on introducing ilmenite (an iron and titanium mineral) as a raw mineral feedstock for the Sydney Steel plant. The Nova Scotia government has retained Hoogovens to manage the provincially owned Sydney Steel operation (Sysco). Hoogovens is also working with the major Dutch Bank ABN-AMRO who has been commissioned by the Nova Scotia government to privatize Sydney Steel. The agreement deals with the evaluation of a potential new source of raw material feedstock for Sysco. If the material is proved suitable for steel production in Sydney there are several distinct advantages which would be realized. Firstly, Sysco would have a preferential source of raw materials, which would come from a Nova Scotia source, thus giving the company a distinct competitive advantage. Secondly, Titanium Corporation and NAR would benefit from a processing arrangement, which would augment their anticipated titanium production. The process under consideration involves locating a titanium slag facility at the Sysco site whereby two products would be generated, titanium slag and an iron byproduct. If a titanium slag facility were situated adjacent to the Sysco site it would allow the liquid iron byproduct to be used as a direct feed into the existing electric arc furnace. This offers a significant cost benefit for Sysco relative to the world market price for scrap or alternative virgin iron units and would contribute to a reduction in power and electrode consumption. Additionally, the titanium slag process generates significant quantities of fuel gas, which could be used directly