Titanium Corporation Inc. (the "Company" or "Titanium") (TSX VENTURE:TIC) today released its results for the second quarter ended February 28, 2017. The Company continues to make progress and work closely with the industry and governments toward commercialization of its CVW™ technology.
"The outlook for the oil sands industry and commercialization of our technology has improved significantly with the recovery of oil prices, pipeline approvals, major project completions and a focus by the industry on value-add incremental projects and meeting new environmental and tailings regulations," commented Scott Nelson, Titanium's President and Chief Executive Officer. "Governments have been enacting new environmental regulations, carbon pricing, oil sands tailings regulations and moving forward with funding programs to assist innovation and the implementation of new sustainable technologies such as our CVW™ technology."
The Company's activity during the second quarter and the following months has included strengthening our balance sheet through a successful rights offering financing, repayment of loans, and commencing the qualification process for government funding from new programs for commercialization of our technology.
Highlights for the quarter and subsequent months are summarized below:
Titanium is focused on achieving long-term financial success by commercializing its innovative CVW™ technologies and achieving a first commercial project. The Company's recent recapitalization and loan repayment enables continued progress towards commercial success. However, until a commercial investment is made the Company expects to incur losses. With the completion of extensive pilot testing on its CVW™ technology, research & development ("R&D") investment has been substantially reduced as the Company focuses its resources on commercialization.
Net loss for the three month period ended February 28, 2017 was $0.9 million compared to $0.8 million for the three month period ended February 29, 2016. The increase in net loss by $0.1 million relates primarily to the full amortization of deferred financing costs associated with the loan repayment on December 16, 2016. Titanium's net loss for the period is in line with expectations as a development stage company.
Research & Development ("R&D")
For the three month period ended February 28, 2017, R&D spending was $0.2 million and consisted primarily of compensation for technical staff and rent, equipment storage fees, and patent filing and maintenance fees. R&D spending was consistent at $0.2 million with the corresponding period in 2016. Until a commercial arrangement is reached, R&D expenses in future quarters will be modest.
General & Administrative ("G&A")
G&A expense was $0.5 million for the three month period ended February 28, 2017 consistent with the three month period ended February 29, 2016. Included in the quarterly G&A expenses are non cash items of $0.2 million related to stock based compensation and equity settled compensation which was consistent with the three month period in the corresponding period.
The Company had $5.1 million in cash at February 28, 2017 as compared to $0.6 million at August 31, 2016 after expenses from the financing and other operating expenses incurred to support progress towards commercialization. The recapitalization of the Company on December 19, 2016 included the receipt of $6.5 million from the issuance of 13,069,062 common shares and the repayment of the outstanding loan facility and extinguishment of the Company's debt obligations.
To view the Company's management discussion and analysis and interim condensed financial statements for the three and six month periods ended February 28, 2017, please visit our website at www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium Corporation's CVW™ technology provides sustainable solutions to reduce the environmental footprint of the oil sands industry. Our technology reduces the environmental impact of oil sands froth treatment tailings while economically recovering valuable products that would otherwise be lost. CVW™ recovers bitumen, solvents and heavy minerals from tailings, preventing these commodities from entering tailings ponds and the atmosphere: volatile organic compound and greenhouse gas emissions are materially reduced; hot tailings water is improved in quality for recycling; and residual tailings can be thickened more readily. A new minerals industry will be created commencing with the production and export of zircon, an essential ingredient in ceramics. The Company's shares trade on the TSX-V under the symbol "TIC". For more information please visit the Company's website at www.titaniumcorporation.com.
SOURCE: Titanium Corporation Inc.
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