White Mountain Signs Third LOI With Major Pigment Producer
SANTIAGO, Chile, Jan. 20, 2011 /PRNewswire/ -- White Mountain Titanium Corporation ("White Mountain" or the "Company") (OTC Bulletin Board: WMTM) reports that, further to the news release of November 2, 2010, the Company has signed its third Letter of Intent off-take agreement ("LOI") with a major pigment 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 two LOIs announced earlier and all three speak only to a portion of our planned tonnage and not price at this stage.
Price realizations for titanium feedstock suppliers are rising due to supply constraints and increasing demand for pigment and metal. In their Commodities Quarterly dated January 7, 2011, Credit Suisse comments, "A recent mineral conference left participants convinced prices were set to rise strongly, especially for titanium minerals. We have reviewed our pricing and while we maintain our long-term prices (sic of US$850), we no longer view these as the peak." The report goes on to say, "We expect the price for bulk supply of natural rutile to rise by US$140 in 1Q,11 with US$50/t successive rises in the following quarters, so rutile will finish the year at US$850/t, up US$300/t from the US$550/t price cap. We forecast more modest increases in 2012 with the price peaking at US$950/t at the end of the year, before gradually easing in 2013."
Further to information contained in an 8-K filing dated January 13, 2011, which refers to the completion of a US$3.5 million private placement financing, the Company is deploying these funds to advance its Cerro Blanco titanium project in Chile to final feasibility. The financing was lead by KirkCapital Asset Management with Chelsea Financial Services engaged as Broker-Dealer.
"I am delighted that we have signed a third LOI with a major pigment producer," said Michael Kurtanjek, the Company's President and CEO. "Broad industry support, positive supply fundamentals for titanium feedstock producers and a strong treasury provides us with the impetus and the means to advance Cerro Blanco to final feasibility as quickly as possible. Cerro Blanco can indeed become an accepted titanium feedstock supplier of rutile concentrate for both pigment and metal end uses."
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