Titanium Corporation Reports Results FOR the Second
News Release – August 25, 2021 Page 1
TITANIUM CORPORATION REPORTS RESULTS FOR THE SECOND
QUARTER ENDED JUNE 30, 2021 AND PROVIDES A PROJECT
UPDATE
CALGARY, ALBERTA – August 25, 2021 – Titanium Corporation Inc. (the “Company” or
“Titanium”) (TSX-V: TIC) today released its results for the three and six month periods ended
June 30, 2021.
During the first six months of 2021, the joint Titanium and Canadian Natural Resources Limited
(“Canadian Natural”) project team completed critical milestones related to the CVW™ Horizon
Project (“Project”) related to the Class 3 cost estimate update for the Project, including engineering
validation, optimization, and economics, which remains under review. The Company submitted a
number of government milestone reports and collected over $3.0 million of non-repayable
government funding contributions, including an August payment from Natural Resources Canada
(“NRCan”).
“Completion of this key engineering phase of the Project has enabled our Company and Canadian
Natural to focus on the evaluation of Project costs, environmental and operational benefits and
overall Project economics,” commented Scott Nelson, Titanium’s President and CEO. “We
continue to collaborate with our government funding partners and are assessing the potential for
funding, from recently announced government programs, towards next phases of the Project.”
Highlights for the three and six months ended June 30, 2021
In January 2021, the Company and NRCan signed a Non-Repayable Contribution
Agreement (the “NRCan Agreement”) under the Clean Growth Program, whereby $1.96
million was provided to Titanium to fund eligible expenditures related to an engineering
work program for the period from April 1, 2020 to March 31, 2021.
In March 2021, the Company received the first milestone funding of $353,000 ($392,000
less a 10% holdback) under the NRCan Agreement related to the engineering phase of the
Project, with respect to the period from April 1, 2020 to December 31, 2020.
In March 2021, the Company received the first milestone funding of $640,000 ($800,000
less a 20% holdback) from Emissions Reduction Alberta for the engineering phase of the
Project. This ERA payment is the first under the $5 million ERA Contribution Agreement
announced in September 2020.
In April 2021, the Company announced the signing of a $10 million Project funding
agreement with Sustainable Development Technology Canada and received the first
milestone advance payment of $733,738 (815,264 less a 10% holdback).
In April 2021, the Company and Canadian Natural signed a 2021 Project Coordination
Agreement (the “PCA”), which governs the engineering phase of the Project (the “2021
Program”), for the period from January 1, 2021 to April 30, 2021. The 2021 Program
includes: completion of overall plant design validation and optimization; engineering
redesign and updates related to the minerals separation plant, associated utilities and
product transload facility; and the updating of Class 3 engineering capital costs and
News Release – August 25, 2021 Page 2
operating expenses for all of the Project facilities. The PCA provides for cost and grant
fund sharing by the Company and Canadian Natural in the ratio 30% and 70%, respectively.
During the first four months of 2021, the Company and Canadian Natural completed
engineering work under the 2021 PCA.
In June 2021, the Company received the second milestone funding of $160,000 ($200,000
less a 20% holdback) under the ERA Agreement for an engineering phase of the Project,
with respect to the period from January 1, 2021 to March 31, 2021.
In June 2021, the Company finalized an expenditure claim under the NRCan Agreement
and in August 2021 received funding of $1.34 million ($1.49 million less a 10% holdback)
with respect to the engineering phase of the Project for the period from January 1, 2021 to
March 31, 2021.
In addition to advancing the Project with Canadian Natural and securing government
funding for the Project, the Company continues to focus on conserving cash through
reducing costs such as compensation, travel and other discretionary expenses. 100% of
directors’ compensation and a portion of management compensation have been deferred
under the Company’s equity-based plans.
In June 2021, the Company announced the cancellation of the annual general and special
meeting of shareholders of Titanium, initially scheduled for June 2021, and subsequently
rescheduled the meeting for August 2021. The Company has been granted an extension by
the Court of Queens Bench of Alberta pursuant to Section 133(3) of the Canada Business
Corporations Act permitting the Company to hold its annual general and special meeting
at any time on or before December 30, 2021, which is the result of ongoing discussions
between key shareholders of Titanium and the Board of Directors of the Company that
have not yet concluded. These discussions are focused on potential financing options for
the Company and the Board of Directors is evaluating all such financing options.
Depending on the outcome of these discussions and the evaluation by the Board of
Directors, certain directors of Titanium may remove their names for re-election and the
Board of Directors may choose to nominate alternative directors for election. While the
Board of Directors will endeavor to hold the shareholder meeting as soon as possible, these
discussions and the evaluation are ongoing and will take more time.
FINANCIAL OVERVIEW
The Company is focused on achieving long-term financial success by implementing its CVW™
technologies in commercial operations at oil sands sites. The Company is working with Canadian
Natural on the Class 3 engineering phase of the Project, including engineering validation,
optimization and economics, as well as planning for the potential implementation at Canadian
Natural’s Horizon site. However, until these Project activities are completed to the satisfaction of
the parties, commercial arrangements and investment decisions are made and facilities constructed
and operating, the Company expects to continue to incur losses. Currently, quarterly losses are
comprised of project engineering costs and general and administrative (“G&A”) expenditures.
Changes in quarterly results are dependent on project activity and the timing of payments related
to project cost recovery.
News Release – August 25, 2021 Page 3
In addition to its ongoing working capital requirements, the Company must secure sufficient
funding for commercialization of its technology. The Company may be constrained in its ability
to meet its obligations as they come due and, accordingly, the Company is reviewing further
funding and financing opportunities. Currently, the financial statements of the Company are
reported with a going concern assumption and disclosure regarding such going concern uncertainty
is disclosed in the Company’s financial statements.
Cash Flow - The Company’s aggregate cash position was $1.6 million as at June 30, 2021, as
compared to $2.7 million as at December 31, 2020. The decrease in cash of $1.1 million is the
result of funding the Company’s engineering programs and G&A expenses during the quarter
versus the timing of receiving grant funding amounts. The Company did not report any activities
from investing or financing. Cash used in operating activities for the three months ended June 30,
2021 was $0.1 million, compared to a use of cash of $0.6 million for three-month ended June 30,
2020.
Net Loss – For the three months ended June 30, 2021, the Company reported a net loss of $0.7
million or $0.01 loss per share, comparable to the net loss for the comparable quarter ended June
30, 2020, of $0.7 million or $0.01 loss per share. The net loss consisted of G&A ($0.7 million)
and research and development (“R&D”) ($0.05 million) expenses in the current period.
Research & Development – R&D expenses for the three months ending June 30, 2021 were lower
at $0.05 million, as compared to $0.3 million for the comparative three months ended June 30,
2020. R&D spending in the current quarter consisted primarily of compensation for technical
staff, on-going minerals testing and evaluations, optimization engineering work and updating cost
estimates. The R&D spending is offset by recoveries of project costs, related to government grant
funding received during the quarter.
General & Administrative - G&A expenses for the three months ending June 30, 2021 were
higher at $0.7 million, as compared to $0.4 million for the comparative three months ended June
30, 2020. The increase related to higher expenses for compensation and benefits, consulting and
professional costs, and investor relations and regulatory, which were partially offset by decreases
in equity-based compensation and travel.
To view the Company’s management discussion and analysis and interim unaudited financial
statements for the three and six month periods ended June 30, 2021, please visit our website at
www.titaniumcorporation.com or SEDAR at www.sedar.com.
About Titanium Corporation Inc.
Titanium is a clean technology innovator focused on providing solutions to the mining sector of
Canada’s oil sands industry. 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, heavy
minerals and water from tailings, preventing these commodities from entering tailings ponds and
the atmosphere: volatile organic compound and greenhouse gas emissions are materially reduced;
News Release – August 25, 2021 Page 4
hot tailings water is improved in quality for recycling; and residual tailings can be thickened more
readily. A new minerals industry would be created with the production and export of zircon and
titanium, essential ingredients in the ceramics and pigment industries.
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.
Disclosure regarding forward-looking information
This news release contains forward-looking statements and information within the meaning of applicable Canadian
securities laws (collectively, " forward-looking information ") that reflect the current expectations of management
about the future results, performance, achievements, prospects or opportunities for Titanium, including statements
relating to the occurrence and timing of future steps with respect to the Project, including the Project activities and
the factors that are expected to affect such occurrence and timing; the continued effective collaboration between the
Company and Canadian Natural; the Company's ongoing engagement with its business partners and government
funding agencies; the ability of the Company to continue to make steady progress with the joint team on the
optimization/validation engineering phase of the Project, despite the decline in economic activity in 2020 and into
2021 and the cancellation or suspension of many new oil sands projects; the Company's continuing cash conservation
program; the Company's ongoing evaluation of financing opportunities, including grant and financing opportunities
from applicable government programs and the continued availability to the Company of the same; the terms of
agreements entered into with certain government agencies; the effect of market conditions and the COVID-19
pandemic on the Company; and the advantages of the Company's technology in assisting with the recovery of the
energy industry in Alberta and Canada. This forward-looking information generally can be identified by use of
forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "believe", "project", "should" or
"continue" or the negative thereof or similar variations. Forward-looking information is presented in this news release
for the purpose of assisting investors and others in understanding certain key elements of our financial results and
business plan, as well as our objectives, strategic priorities and business outlook, and in obtaining a better
understanding of our anticipated operating environment. Readers are cautioned that such forward-looking
information may not be appropriate for other purposes.
Forward-looking information, by its very nature, is subject to inherent risks and uncertainties and is based on many
assumptions, both general and specific, which give rise to the possibility that actual results or events could differ
materially from our expectations expressed in or implied by such forward-looking information and that our business
outlook, objectives, plans and strategic priorities may not be achieved. Macro-economic conditions, including public
health concerns (including the impact of the COVID-19 pandemic and subsequent waves) and other geopolitical risks,
the condition of the global economy and, specifically, the condition of the crude oil and natural gas industry including
the volatility of global crude oil prices, other commodity prices and the decrease in global demand for crude oil as a
result of the ongoing COVID-19 pandemic, and the ongoing significant volatility in world markets may adversely
impact oil sands producers' program plans, including proceeding with an investment decision in further Project
activities or any final investment decision with respect to commercialization, which could materially adversely impact
the Company. Additional information on these and other factors are disclosed in our most recently filed management's
discussion and analysis, including under the heading “Discussion of Risks”, and in other reports filed with the
securities regulatory authorities in Canada from time to time and available on SEDAR (sedar.com).
In addition to other factors and assumptions which may be identified in this news release, assumptions have been
made regarding, among other things: the condition of the global economy, including trade, public health (including
the impact of the COVID-19 pandemic) and other geopolitical risks, including the fact that any estimates of Project
next steps, as well as the detailed engineering and construction period may be affected by the COVID-19 pandemic,
condition of the global economy and commodity prices, in particular crude oil prices; the stability of the economic
and political environment in which the Company operates; the success of the Project activities, including the expected
News Release – August 25, 2021 Page 5
assessment of engineering validation and optimization reviews for next steps as part of the Project activities; the
ability of the Company to enter into commercial contracts with oil sands producers and to achieve commercialization
of the CVW™ technology, including the anticipated scope of such commercial contracts; the ability of the Company
to enter into commercial contracts with other strategic partners in relation to building and operating facilities, as
required; the ability of the Company to retain qualified staff; the ability of the Company to obtain financing on
acceptable terms, including available grant and financing opportunities from government programs and finalizing
funding agreements for such government programs; the translation of the results from the Company's research, pilot
programs, Project activities during front end engineering design (“FEED”), engineering validation and optimization
and studies into the results expected on a commercial scale; the belief that the Company's technology will provide
important environmental and economic benefits that will assist with the recovery of a resilient and sustainable energy
industry in Alberta and Canada; the anticipated timing for the completion of detailed engineering and construction
once all Project activities are completed and a final decision to proceed has been made; future crude oil and minerals
prices and the impact of lower prices on activity levels and cost savings of oil sands producers; the impact of
increasing competition; the ability to protect and maintain the Company's intellectual property; currency, exchange
and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions
in which the Company operates; and the ability of the Company to successfully market its CVW™ technology.
The Company has not commercially demonstrated its technologies and there can be no assurance that our research,
pilot programs, Project activities during the FEED, engineering validation and optimization and related studies will
prove to be accurate nor that such commercialization efforts will be successful, as actual results and future events
could differ materially from those expected or estimated in such forward-looking information. As a result, we cannot
guarantee that any forward-looking information will materialize and we caution you against relying on any of this
forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release describes our expectations as of August 25, 2021 and,
accordingly, is subject to change after such date. Except as may be required by Canadian securities laws, we do not
undertake any obligation to update or revise any forward-looking information contained in this news release, whether
as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, contact:
Scott Nelson Hansine Ullberg
President & CEO Vice President Finance & CFO
Tel: (403) 561-0439 Tel: (403) 874-9498