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Titanium Resources (SRX)

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Wednesday 29 December, 2010

Titanium Resources

Final Resolution of Loan Disp

RNS Number : 6300Y
Titanium Resources Group Ltd
29 December 2010
 

Titanium Resources Group

Final Resolution of Loan Dispute with the Government of Sierra Leone

29 December 2010: Titanium Resources Group ("TRG" or "the Company") today announces the full resolution of its dispute with the Government of Sierra Leone (the "Government") regarding funds loaned by the Government to TRG's subsidiary, Sierra Rutile Limited ("SRL").  

Following the announcement on 7 October 2010 of an agreement in principle to resolve the loan dispute, the Government has now formally withdrawn its request for the payment by SRL of all accrued interest plus the accrued balance and capital interest owing. Further, the Government acknowledges that no event of default or potential event of default is outstanding, and that it has no claims regarding any prior events of default which may have occurred. 

Discussions with the Government regarding a potential debt-for-equity swap are ongoing, however the Board is also considering a number of other options to reduce the Group's outstanding debt level.

John Sisay, CEO of TRG, commented,

"I would like to thank the Government of Sierra Leone for the support that they have shown TRG and expect that our agreement will form the basis for a long-term and mutually beneficial partnership.  We can now focus all of our efforts on the implementation of the first phase of improvements identified in our ongoing operations review, as well as the continued identification of additional measures to further increase production and operational efficiencies."

ENDS

For further information:

 

Titanium Resources Group

John Sisay, Chief Executive Officer

Telephone: +44 (0) 20 7321 0000

 

Arbuthnot Securities

Nominated Advisor & Broker

Richard Johnson / Hugh Field

Telephone: +44 (0) 20 7012 2000

 

Aura Financial

Michael Oke / Andy Mills

Telephone: +44 (0) 20 7321 0000

 

Titanium Resources Group

Titanium Resources Group is a mining company with operations in the Republic of Sierra Leone. The Group is the country's largest private sector employer and produces rutile and ilmenite for use in industrial applications. The Group's operations have historically accounted for over 65 per cent of the exports of Sierra Leone. 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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