MONTREAL and PISCATAWAY, NJ, Aug. 26, 2014 /CNW Telbec/ - Argex Titanium Inc. (TSX: RGX) and Helm U.S. Corp., a wholly-owned subsidiary of German-based HELM AG, today jointly announced that they have entered into an exclusive long-term marketing and supply agreement for the distribution of Titanium Dioxide (TiO2) in the US and Canada.
Under this agreement, HELM U.S. will exclusively market and distribute fifty percent (50%), up to 25,000 metric tons per year, of TiO2 produced from Argex's first industrial-sized plant to be located in Salaberry-de-Valleyfied, Québec. The agreement is for a period of seven years, commencing when the plant reaches a certain capacity which is currently expected to take place in the first quarter of 2017.
"This agreement combined with the supply agreement with PPG Industries, Inc. commits a significant quantity of the available capacity of Argex's first full scale titanium dioxide production plant," said Roy Bonnell, president and chief executive officer of Argex Titanium Inc. "This is a significant step for Argex. It demonstrates confidence in the scalability of our technology and in our ability to partner with world-class leaders in the industry."
"We are extremely pleased to be able to secure an additional supply of high quality titanium dioxide for our customers and add another milestone to the development of our distribution network in North America," said Philipp Mangold, president of HELM U.S. Corp. "This is a very exciting opportunity and we recognize the potential effect Argex's next generation process will have on the titanium dioxide industry."
About Helm AG
HELM AG is a multi-functional marketing organization in the chemical sector, situated in Hamburg, Germany. The family owned company was founded in 1900 and has developed into one of the world's major independent chemicals marketing companies. HELM AG operates in more than 30 countries around the world, with revenue in 2013 of approximately EURO 10 billion. Its specific local and regional knowledge guarantees access to the major markets worldwide.
About Argex Titanium Inc.
Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications. The company's unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods. The company's primary near term goal is to rapidly advance toward a 50,000 tonne per annum production module as a first step in its goal to transform the 5.2 million tonne per annum TiO2 industry.
Forward-Looking Statements
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Argex, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Argex will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Argex's control. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in Argex's Annual Information Form for the fiscal year ended December 31, 2013, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements. Argex does not intend, nor does Argex undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Argex Titanium Inc.