Temas Resources Signs Letter of Intent to Acquire Major Stake in Industry-Leading Technology via Process Research Ortech Inc. Affiliate
Temas Resources Signs Letter of Intent to Acquire Major
Stake in Industry-Leading Technology via Process
Research Ortech Inc. Affiliate
VANCOUVER, British Columbia, January 27, 2021 ― Temas Resources Corp. (“The
Company”, “Temas Resources”, CSE: TMAS, OTCQB: TMASF, FSE: 26P), a publicly
traded company focused on the advancement of mineral independence within stable,
mining-friendly jurisdictions, announced today it has signed a non -binding Letter of
Intent (“LOI”) to acquire a major stake of the issued and outstanding shares of ORF
Technologies, Inc. (“ORF”) and the patents owned by ORF (“Patents”), which set a
new industry benchmark for production costs and environmental impact in
Titanium(IV) oxide (TiO2) production.
The Patents are for the cost -efficient and eco -friendly extraction, separation and
recovery of nickel, iron, gold, and titanium oxide, with ongoing development of new
Patents for the extraction and recovery of rare earth elements and zinc expected to
be completed in 2021.
More Cost Effective
The Patents’ TiO 2 technology is estimated to be 59.2% lower on a production cost
basis compared to The Chemours Company, the world’s largest TiO 2 producer with
the leading low-cost process. The result is a process 144.8% more cost-efficient.
A 2017 study published by the University of Minnesota’s Natural Resources Research
Institute (“NRRI”) on the Patents’ TiO 2 recovery process estimated the adjusted
production cost per ton of TiO 2 was $713 after a credit was applied for the sale of
recovered iron oxide, representing a production cost basis 69.7% lower than the
industry average estimated production cost of $2,352 per ton, and 59.2% lower than
The Chemours Company leading low-cost process at $1,746 per ton.
The entire market size for TiO2 is $15 .76 billion and is expected to witness a
compound annual growth rate of 8.7% until 2025, according to Grand View Research,
Inc.
The Patents process is less energy -intensive than the industry standard and can
create high quality TiO2 from low grade materials, which contain contaminants other
industry competitors must discard due to the prohibitive cost of extracting the full
value utilizing current processes.
More Environmentally Friendly
The Patents are environmentally friendly compared to the current industry standard
chloride and sulphate processes, which produce significant hazardous waste by
disposing of iron and byproduct chlorides, large iron sulphate products and dilute
acids which are injected into the earth. A U.S Department of Health and Human
Services’ study has shown that leading industry processes contaminate underground
drinking water. The Patents eliminate this environmental impact by recycling leaching
agents, leaving iron oxide as the only byproduct.
“It will be a tremendous benefi t for the Company to have access to such robust
intellectual property that should unlock significant value from our 100% owned La
Blache Project in Quebec,” said Michael Dehn, CEO of Temas Resources. “Previous
test work by Process Research Ortech using the ORF ilmenite process has produced
material that has exceeded specifications of major North American commercial end
users.”
“The vison we had when putting the La Blache Property acquisition together was to
be able to unlock the value of the titanium, iron and vanadium deposits,” Kyler Hardy,
Chairman of Temas Resources states. “With the ORF LOI signed we feel this is
attainable, and it opens up the opportunity to utilize other undervalued assets
globally that we can develop into additional revenue streams.”
The LOI dated January 26, 2021 carries with it an Exclusivity Period of four weeks
from the date of the LOI and is conditional subject to final due diligence and execution
of a definitive agreement. The Company intends to acquire 50% interest in ORF for
$600,000 in common shares of Temas Resources on a pro-rata basis at closing, equal
to the 10-day VWAP of the common shares of Temas Resources. The Company will
fund certain ongoing expenses through secured loans, including acquisition and
development of new technology, to be repaid from income generated by ORF before
declaration of dividends to shareholders of ORF.
Temas Resources is also pleased to announce that the shares of the company are
now trading in Frankfurt Stock Exchange under the symbol 26P.
About Temas Resources
Temas Resources Corp. ("Temas Resources") (CSE: TMAS) (OTCQB: TMASF) (FSE:
26P) is responding to the growing global demand for iron ore and two strategically
important minerals — titanium and vanadium — deemed by the U.S. Department of
the Interior as critical to U.S. national security and the economy. Temas Resources
properties are in the stable , mining -friendly jurisdiction of Quebec (Canada)
bordering Vermont, Maine, and New York State (U.S.) in an area known as the
Grenville Geological Province. The Grenville Geological Province is home to Lac Tio,
the largest solid ilmenite deposit in the wor ld. As a mineral exploration company
focused on the acquisition, exploration and development of iron, titanium, and
vanadium properties, Temas Resources has focused its efforts on advancing two
major projects in the Grenville Geological Province area. The Company’s first project,
the DAB Property, consists of an option for 100% interest on 128 contiguous mineral
claims which covers 6,813 hectares (68.14 km²) within the Grenville Geological
Province. At the Company’s flagship La Blache Property, Temas has 100% ownership
of 48 semi-contiguous mineral claims which cover 2,653 hectares (26.53 km²) within
the Grenville Geological Province. All public filings for the Company can be found on
the SEDAR website www.sedar.com. For more information about the Company,
please visit www.temasresources.com.
Qualified Person
Rory Kutluoglu, B.Sc., P.Geo, is the Qualified Person as defined by NI 43 -101 who
has reviewed and approved the technical information contained within this press
release.
On behalf of the Board of Directors of Temas Resources Corp.,
“Kyler Hardy”
CEO, Director
Contact: Nick Spencer, Investor Relations
Phone: +1 (604) 332-0902
Email: [email protected]
Forward Looking Statements
This news release includes certain “Forward ‐Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and “forward‐looking
information” under applicable Canadian securities laws. When used in this news release, the
words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”,
“would”, “could”, “schedule” and similar words or expressions, identify forward ‐looking
statements or information. These forward‐looking statements or information relate to, among
other things: entry into a definitive ag reement for the Equity Investment Facility, closing of
the Equity Investment Facility, the Company’s plan to build an advanced base and special
metals portfolio, the development of the La Blache Property and the DAB Property, including
drilling activities; and future mineral exploration, development and production, the funding of
the Company pursuant to the Equity Investment Facility, the issuance of securities pursuant
to the Equity Investment Facility, and the resale restrictions and arrangements relating to
such securities.
Forward‐looking statements and forward ‐looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of Temas Resources, future
growth potential for Temas Resources and its business, and future exploration plans are based
on management’s reasonable assumptions, estimates, expectations, analyses and opinions,
which are based on management’s experience and perception of trends, current conditions
and expected developments, and other f actors that management believes are relevant and
reasonable in the circumstances, but which may prove to be incorrect. Assumptions have
been made regarding, among other things, the price of iron, titanium, vanadium and other
metals; no escalation in the se verity of the COVID -19 pandemic; costs of exploration and
development; the estimated costs of development of exploration projects; Temas Resources’
ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect Temas Resources’ respective current views with respect to future
events and are necessarily based upon a number of other assumptions and estimates that,
while considered reasonable by management, are inherently subject to significan t business,
economic, competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or achievements that are or may be
expressed or implied by such forward‐looking statements or forward-looking information and
Temas Resources has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: the Com pany’s dependence on one mineral
project; precious metals price volatility; risks associated with the conduct of the Company’s
mining activities in Quebec; regulatory, consent or permitting delays; risks relating to reliance
on the Company’s management tea m and outside contractors; risks regarding mineral
resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a
commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to
generate sufficient cash flow from operations; risks relating to project financing and equity
issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of
reserves and resources, metallurgical recoveries and capital and operating costs of such
projects; contests over title to properties, particularly title to undeveloped properties; laws
and regulations governing the environment, health and safety; the ability of the communities
in which the Company operates to manage and cope with the implicat ions of COVID-19; the
economic and financial implications of COVID -19 to the Company; operating or technical
difficulties in connection with mining or development activities; employee relations, labour
unrest or unavailability; the Company’s interactions w ith surrounding communities and
artisanal miners; the Company’s ability to successfully integrate acquired assets; the
speculative nature of exploration and development, including the risks of diminishing
quantities or grades of reserves; stock market vola tility; conflicts of interest among certain
directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and
the factors identified under the caption “Risk Factors” in Temas Resources’ management
discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐
looking statements or forward-looking information. Although Temas Resources has attempted
to identify important factors that could cause actual results to differ materially, there may be
other factors that cause results not to be anticipated, estimated or intended. Temas Resources
does not intend, and does not assume any obligation, to update these forward ‐looking
statements or forward -looking information to reflect changes in assumptions or c hanges in
circumstances or any other events affecting such statements or information, other than as
required by applicable law.