Canadian emerging producer of high-grade titanium dioxide (TiO2), Argex Titanium said it has achieved significant milestones during 2014 and also the first few months of 2015.
According to an Argex press release, during 2014, it secured an exclusive long-term marketing and supply agreement with Helm US Corp.
It raised CA $7.5 million through the issuance of convertible debentures and exited 2014 with a clean capital structure as all remaining warrants have been exercised or expired.
“Furthermore, in December 2014, Argex received an ICIS Innovation Award, which recognises chemical companies that demonstrate an innovative approach to business, the environment and sustainability."
In February 2015, Argex announced that it had successfully completed technical due diligence associated with the financing of Argex’s first plant.
“The technical diligence was demanding and thorough and contributed positively to the development of our financing process and our strategy of risk mitigation,” CEO Roy Bonnell said.
According to Argex, it is poised for the next phase of its growth after the successful construction and operation of its first plant located in Salaberry-de-Valleyfield, Quebec.
Argex currently estimates that full capacity of the plant will be achieved approximately 12 months after commencement of commercial operations.
The Argex plant will have a capacity of 50,000 tons per annum and expects to generate revenue of CA $145-$155 million, gross profit of $80-$96 million, with a gross margin of 55-62 per cent. (AR)
Argex has now secured a one million square foot parcel of land where it plans to build a customised building rather than renovate the existing building where Argex’s pilot plant will continue to be situated.
The parcel of land to be purchased from and rezoned by the City of Valleyfield, is located in the Valleyfield Port area and is expected to result in many advantages.
Equivalent capital cost, including contingency risks, reduced construction risk as the potential for unknown liabilities and requirements to tear down, move or expand buildings and fixtures, are avoided.
Increased building height and equipment layout flexibility and a closer proximity, with a rail spur easement, to a local CSX rail terminal and to the Port of Valleyfield.
The location is also in closer proximity to a major chemical feedstock provider, will incur reduced operating expense, without change in construction timeline.
