White Mountain Completes In-Fill Drilling Program and Signs Fourth LOI Off-Take Agreement. White Mountain Signs Third LOI With Major Pigment Producer
SANTIAGO, Chile, April 6, 2011 /PRNewswire/ -- White Mountain Titanium Corporation ("White Mountain" or the "Company") (OTC Bulletin Board: WMTM) reports that it has completed an in-fill drilling program at the Las Carolinas prospect. The program consisted of 54 diamond drill holes totalling 7,047 metres. The Company's geological staff is scheduled to complete core logging, assay and data input by the end of April at which point revisions to the Las Carolinas geologic block model and Whittle pit design work will commence.
The Company also reports that it has signed its fourth Letter of Intent off-take agreement ("LOI") with a major Asian titanium metals and chemical producer for the supply of standard grade rutile concentrate from its proposed Cerro Blanco operation. The terms of this latest LOI are substantially the same as those contained in three LOIs with titanium pigment producers announced earlier. All four LOIs relate to standard grade rutile concentrate, speak to tonnage and not price and are non-binding on the parties at this stage.
In a related development, the Company has received positive interest from welding rod producers for the supply of fine and ultra-fine grade rutile concentrates. Off-take discussions with these producers are on-going and further information will be announced in due course.
Further to information contained in an 8-K filing dated March 29, 2011 a major institutional shareholder exercised 4.25 million warrants which resulted in net proceeds of $2.125 million to the Company.
Commenting on these developments, Brian Flower, the Company's Executive Chairman, said, "Management continue with their disciplined milestone approach to advance the Cerro Blanco project toward final engineering feasibility. We are very encouraged by what has been achieved to date and by the forecast supply – demand fundamentals for emerging titanium dioxide feedstock producers such as White Mountain."
About White Mountain Titanium Corporation
The Company holds mining concessions on the Cerro Blanco property currently consisting of 33 registered mining exploitation concessions and five mining exploration concessions in the process of being constituted, over approximately 8,225 hectares located approximately 39 kilometres west of the City of Vallenar in the Atacama, or Region III, geographic region of northern Chile. The Company's principal objectives are to advance the Cerro Blanco project towards a final engineering feasibility, and to secure off-take contracts for the planned rutile concentrate output. It would be the intention to sell the rutile concentrate to titanium metal and pigment producers. Work also continues to investigate the commercial viability of producing a feldspar co-product. The feldspar could find applications in the glass and ceramics industries.
The OTC BB has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in our press releases and on our website, such as 'reserves,' 'resources,' 'geologic resources,' 'proven,' 'probable,' 'measured,' 'indicated,' and 'inferred,' that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10K for the year ended December 31, 2007, File No. 333-129347, and in subsequent filings with the SEC. You can review and obtain copies of our filings from the SEC's website at http://www.sec.gov/edgar.shtml.
White Mountain Titanium Corporation
Michael Kurtanjek, President
(56) 2 657-1800
Brian Flower, Chairman
SOURCE White Mountain Titanium Corporation