Titanium Resources Group
Encyclopedia
Titanium Resources Group Ltd. is a holding company
that wholly owns a number of mining
, exploration
and marketing
companies with large holdings in Sierra Leone
.
The company owns the Sierra Rutile Mine (controlled through Sierra Rutile Limited). The mining operations account for 65% of Sierra Leone's exports and produce about 23% of the world's supply of natural Rutile
, salable amounts of Bauxite
, and in 2010 - Zircon
. The company attempted to make the mining operation as self-sufficient as possible, by building a dedicated port
, power station
, power grid
and water reticulation system. They also built housing, medical and recreational facilities for their workers. In 1995 the company abandoned their operation because of the Sierra Leone Civil War
.
In January 2005, the company agreed a mining lease covering 580 km² of South West Sierra Leone, about 150 km South East of the capital.
On 28 February 2005, the company announced that they were beginning refurbishment of the Sierra Rutile Mine, to be completed in early 2006. Later in the year, they announced that they were to restart their SML Bauxite mine also. In December 2005 they acquired the Rotifunk mineral sands prospect, also in Sierra Leone, from Gondwana Investements S.A. for US$120 000. In January, 2006, they completed refurbishment and commissioned their primary bucket line dredge
(Dredge D1), and so restarted the SML Bauxite Project.
On the 25th August 2005, they listed shares on the AIM
market of the London Stock Exchange
under the symbol
: AIM: TXR.L.
In December 2007 a second Dredge D2 commenced production at the Company's Sierra Rutile Mine, increasing capacity to 200,000 tonnes per annum. Dredge D2 is a complete unit comprising a bucket ladder dredge and heavy mineral separation plant mounted on a single pontoon.
During July 2008 the company announced the disposal of Global Aluminium Limited to Vimetco N.V. for a total cash consideration of US$40 million. Global Aluminium Limited, a wholly owned subsidiary of the Company, owns 100% of Sierra Mineral Holdings 1, Ltd, the operating company for the Company's SML bauxite mine in Sierra Leone.
On 25 July 2008 trading in the company's shares were suspended on AIM
market of the London Stock Exchange
after it was announced Dredge D2 had capsized resulting in the loss of two lives. Whilst the company had insurance it would take until 2010 for a resolution with the companies insurers to be agreed when a total of $11m was recovered. Initial estimates believed Dredge D2 could be operational by December 2009 some 14 months of the accident, this was later increased to $35m and 2 years
In January 2009 trading in the companies shares recommenced on AIM
market of the London Stock Exchange
.
Placing
16 November 2009 the company raised $25m via a placing of 151,200,000 new shares at 10 pence. The proceeds of which will fund the three projects Dredge D3, upgrade D1 wet processing plant and upgrading the companies land plant. The upgrade to D1 would cost $2m and increase rutile recovery by 5,000 tonnes and Ilmenite recovery by 1,000 tonnes per annum.
Dredge D3
The third dredge would cost $20m adding 30,000 tonnes to annual capacity. Production was due to start in Q1 2010 and take 12 months to complete, the company later took some time to review this ambitious production schedule to redesign the dredge in order to reduce the build cost and increase its operating efficiencies.
Pala Investment Holding Limited
In September 2010 it was announced that Pala took a 29.8% holding in TXR after acquiring the majority of the Ordinary Shares held by Mr Jean-Raymond Boulle - the previous majority share holder.
Pala is a US$1 billion multi-strategy investment company with a particular focus on mining and natural resource companies in both developed and emerging markets. Pala's exclusive investment advisor, Pala Investments AG, is a Swiss based team with extensive experience within the mining and natural resource sectors. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.
Government of Sierra Leone
During the H2 2010 a dispute arose between the Government of Sierra Leone (GOSL) and SRL over the none payment of certain interest payments regarding a loan from the GOSL. A resolution to the dispute was agreed in December 2010 when the GOSL withdrew 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.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
that wholly owns a number of mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
, exploration
Prospecting
Prospecting is the physical search for minerals, fossils, precious metals or mineral specimens, and is also known as fossicking.Prospecting is a small-scale form of mineral exploration which is an organised, large scale effort undertaken by mineral resource companies to find commercially viable ore...
and marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
companies with large holdings in Sierra Leone
Sierra Leone
Sierra Leone , officially the Republic of Sierra Leone, is a country in West Africa. It is bordered by Guinea to the north and east, Liberia to the southeast, and the Atlantic Ocean to the west and southwest. Sierra Leone covers a total area of and has an estimated population between 5.4 and 6.4...
.
The company owns the Sierra Rutile Mine (controlled through Sierra Rutile Limited). The mining operations account for 65% of Sierra Leone's exports and produce about 23% of the world's supply of natural Rutile
Rutile
Rutile is a mineral composed primarily of titanium dioxide, TiO2.Rutile is the most common natural form of TiO2. Two rarer polymorphs of TiO2 are known:...
, salable amounts of Bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...
, and in 2010 - Zircon
Zircon
Zircon is a mineral belonging to the group of nesosilicates. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO4. A common empirical formula showing some of the range of substitution in zircon is 1–x4x–y...
. The company attempted to make the mining operation as self-sufficient as possible, by building a dedicated port
Port
A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
, power station
Power station
A power station is an industrial facility for the generation of electric energy....
, power grid
Electric power transmission
Electric-power transmission is the bulk transfer of electrical energy, from generating power plants to Electrical substations located near demand centers...
and water reticulation system. They also built housing, medical and recreational facilities for their workers. In 1995 the company abandoned their operation because of the Sierra Leone Civil War
Sierra Leone Civil War
The Sierra Leone Civil War began on 23 March 1991 when the Revolutionary United Front , with support from the special forces of Charles Taylor’s National Patriotic Front of Liberia , intervened in Sierra Leone in an attempt to overthrow the Joseph Momoh government...
.
In January 2005, the company agreed a mining lease covering 580 km² of South West Sierra Leone, about 150 km South East of the capital.
On 28 February 2005, the company announced that they were beginning refurbishment of the Sierra Rutile Mine, to be completed in early 2006. Later in the year, they announced that they were to restart their SML Bauxite mine also. In December 2005 they acquired the Rotifunk mineral sands prospect, also in Sierra Leone, from Gondwana Investements S.A. for US$120 000. In January, 2006, they completed refurbishment and commissioned their primary bucket line dredge
Dredge
Dredging is an excavation activity or operation usually carried out at least partly underwater, in shallow seas or fresh water areas with the purpose of gathering up bottom sediments and disposing of them at a different location...
(Dredge D1), and so restarted the SML Bauxite Project.
On the 25th August 2005, they listed shares on the AIM
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
market of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
under the symbol
Ticker symbol
A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of letters, numbers or a combination of both. "Ticker symbol" refers to the symbols that were printed on the ticker...
: AIM: TXR.L.
In December 2007 a second Dredge D2 commenced production at the Company's Sierra Rutile Mine, increasing capacity to 200,000 tonnes per annum. Dredge D2 is a complete unit comprising a bucket ladder dredge and heavy mineral separation plant mounted on a single pontoon.
During July 2008 the company announced the disposal of Global Aluminium Limited to Vimetco N.V. for a total cash consideration of US$40 million. Global Aluminium Limited, a wholly owned subsidiary of the Company, owns 100% of Sierra Mineral Holdings 1, Ltd, the operating company for the Company's SML bauxite mine in Sierra Leone.
On 25 July 2008 trading in the company's shares were suspended on AIM
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
market of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
after it was announced Dredge D2 had capsized resulting in the loss of two lives. Whilst the company had insurance it would take until 2010 for a resolution with the companies insurers to be agreed when a total of $11m was recovered. Initial estimates believed Dredge D2 could be operational by December 2009 some 14 months of the accident, this was later increased to $35m and 2 years
In January 2009 trading in the companies shares recommenced on AIM
Alternative Investment Market
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market....
market of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
Placing
16 November 2009 the company raised $25m via a placing of 151,200,000 new shares at 10 pence. The proceeds of which will fund the three projects Dredge D3, upgrade D1 wet processing plant and upgrading the companies land plant. The upgrade to D1 would cost $2m and increase rutile recovery by 5,000 tonnes and Ilmenite recovery by 1,000 tonnes per annum.
Dredge D3
The third dredge would cost $20m adding 30,000 tonnes to annual capacity. Production was due to start in Q1 2010 and take 12 months to complete, the company later took some time to review this ambitious production schedule to redesign the dredge in order to reduce the build cost and increase its operating efficiencies.
Pala Investment Holding Limited
In September 2010 it was announced that Pala took a 29.8% holding in TXR after acquiring the majority of the Ordinary Shares held by Mr Jean-Raymond Boulle - the previous majority share holder.
Pala is a US$1 billion multi-strategy investment company with a particular focus on mining and natural resource companies in both developed and emerging markets. Pala's exclusive investment advisor, Pala Investments AG, is a Swiss based team with extensive experience within the mining and natural resource sectors. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.
Government of Sierra Leone
During the H2 2010 a dispute arose between the Government of Sierra Leone (GOSL) and SRL over the none payment of certain interest payments regarding a loan from the GOSL. A resolution to the dispute was agreed in December 2010 when the GOSL withdrew 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.