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Titanium Resources (SRX)

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Tuesday 10 January, 2006

Titanium Resources

Draw Down of Loan

Titanium Resources Group Ltd
10 January 2006

                 Titanium Resources Group Draws Down Balance of
                       European Union €24.75 million Loan

10 January, 2006: Titanium Resources Group ('TRG' or 'the Group') announces that
it has satisfied all outstanding conditions pertaining to refurbishment of the
Sierra Rutile mine and has thereby qualified for, and drawn down, the second and
last tranche of the €24.75 million loan provided by the European Commission, on
behalf of the European Union (EU). The loan will be used for the restart of the
Sierra Rutile mine in Sierra Leone. This latest draw down of €4.75 million
brings total disbursements under the EU Loan to approximately €23 million. The
balance of €2 million will be disbursed upon physical completion of the Sierra
Rutile restart project which is expected to occur in the first quarter of this

A total of €25 million is being provided to the Government of Sierra Leone, to
be on-lent to Sierra Rutile Limited, a subsidiary of TRG. The total term of the
EU Loan is twelve years, comprising a seven year grace period followed by five
years of repayment of principal in equal semi-annual installments to the
Government of Sierra Leone. The repaid principal and interest will be paid to a
joint Government of Sierra Leone/ European Commission fund which will support
various socio-economic development projects in Sierra Leone. The loan carries an
interest rate fixed at 8% per annum.  The first interest payment is not payable
until 36 months after the date of the first disbursement.

Mr. Walter Kansteiner stated:

'Titanium Resources Group is grateful for the financial support of the EU and
the Government of Sierra Leone for the restart of the Sierra Rutile mine. The
mine is the single largest non-governmental employer in the country. As in the
past, the mine is expected to account for a majority of the country's foreign
exchange earnings and a significant part of its GDP. This final disbursement of
the EU Loan will facilitate the anticipated restart of the mine in the first
quarter of 2006.'


For further information

Walter Kansteiner, Chairman
Tel: +44 (0) 207 321 0000

Aura Financial
Michael Oke
Andy Mills
Tel: +44 (0) 207 321 0000

This press release has been issued by TRG and is the sole responsibility of the
company. This press release does not contain or constitute an offer or
invitation to purchase or subscribe for any securities of TRG and should not be
relied on in connection with any decision to purchase or subscribe for any such

The securities referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933 and may not be offered or sold in the United
States absent registration under the Securities Act or an available exemption
from it.

Notes to Editors

Titanium Resources Group

Titanium Resources is the holding company of a group of companies that are
engaged in the mining, marketing and exploration of mineral resources. The Group
owns two mining operations in the Republic of Sierra Leone - the Sierra Rutile
Project and the SML Bauxite Project. Both mines operated for over 15 years until
operations were suspended in 1995.  The projects accounted for 75 per cent of
the exports of Sierra Leone.

The Sierra Rutile Project will employ conventional dredging and processing
methods to produce mineral sands in the southwest of Sierra Leone, where its
production previously represented approximately 30 per cent of the world's
annual supply of natural rutile. Natural rutile is a high titanium-bearing
feedstock employed in the manufacture of titanium dioxide (TiO2) pigments that
are used in paint, plastics, paper and pharmaceuticals and the production of
titanium metal and welding rods.

In close proximity to the Sierra Rutile mine is the SML Bauxite Project which
successfully mined bauxite in the Mokanji area for over 30 years prior to the
suspension of operations in 1995. Bauxite from the SML bauxite mine is premium
grade metallurgical bauxite which is the primary feedstock used in the
production of aluminium.

Both projects will employ proven mining and processing techniques and were
profitable operations in the past. Rutile and bauxite from this region are both
recognised for their high quality. The Group plans to restart operations at each
mine in the first quarter of 2006.

The Loan Agreement with the Government of Sierra Leone

The following is an extract from the AIM Prospectus published by TRG in August

'A loan agreement (the 'Loan Agreement') between SRL and the Government, dated 2
August 2004, pursuant to which the Government will on-lend US$24,750,000 of the
US$25,000,000 that was granted from the European Commission in connection with
the Sierra Rutile Project (the 'Loan'). US$250,000 of the Loan has been retained
to cover the cost of auditing the Sierra Rutile Project and a further 10 per
cent of the Loan will be held back by the European Commission by way of
guarantee to cover SRL's obligations until completion of the Sierra Rutile

SRL will pay to the Government 8 per cent interest per annum on the principal
amount of the Loan disbursed and outstanding. The interest payments fall due
semi-annually on 15 June and 15 December of each year. The first interest
payment is not payable until 36 months after the date of the first disbursement.
The principal and any deferred interest on the Loan shall be repaid in 10 equal
instalments, the first to be made 84 months after the date of the first

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