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Corporate Spotlight

Attractive Asset Portfolio
-Strong portfolio of mining assets across the value chain, from mineral exploration and production to mineral processing infrastructure
-Complimentary assets across the mining spectrum ensuring full vertical integration across the value chain
-Leverage respective board
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FINAL PERMIT

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VISTA GOLD PLANT IN PERU RECEIVES FINAL PERMIT

ASX Announcement 27 May 2019 


HIGHLIGHTS 

  • Vista Gold Plant fully commissioned, permitted and licenced to commence commercial production 
  • Vista Gold Plant commencing operations at a rate of 80 tonnes per day and is anticipated to produce 700 ounces of gold from material treated during initial operational trials and commissioning.


Titan Minerals Limited (ASX: TTM) (“Titan” or “the Company”) is pleased to announce that the Direccion Regional De Energia Y Minas (The Regional Energy and Mines Department, or “DREM”) has granted the final operator’s permit (“Concession of Benefit” / Concesión de Beneficio) required for operation of the Vista Gold plant located on a private land holding in the District of Vista Alegre, Province of Nasca and Department of Ica, in Southern Peru (“Vista Gold Plant”). 


The Resolución Directoral Regional No 022-2019/GORE-ICA/DREM (“Resolution”) issued by the DREM specifies Vista Gold S.A.C., a wholly owned subsidiary of the Company, has been awarded a Concession of Benefit to operate the Vista Gold Plant and provides for the construction and operation of a mineral processing facility with up to 350 tpd processing capability and a tailing pond. The Concession of Benefit was granted following;


  1. an exhaustive and thorough inspection and review period with DREM, including review of the Company’s operating history; and 
  2. receipt of the requisite environmental permitting approval.


Refer to the ASX announcements dated 9 January 2019 and 28 February 2019 for further details. 


In operating the Vista Gold Plant, Titan will target a significant increase in production over the coming year. During calendar year 2018 production at the Tulin gold plant (for which the right to operate was acquired as part of the acquisition of Andina Resources Ltd completed in September 2018) was 6,957 oz of gold and 8600 oz silver which resulted in US$8,922,000 of metal sales with an average realised gold price of US$1,264 per oz. The increase in production anticpated in the next six months, will more than double the previous year’s production and is well within the Vista Gold Plant's current capacity.


Titan's Executive Chairman Mr Matthew Carr commented: "We are extremely pleased with the achievement of this important milestone and consider that the receipt of the final operator's permit from the Peruvian authorities is testament to the quality and professionalism of our Peruvian operational and management team and is a validation of Titan's social licence to operate in Peru. We look forward to commencing commercial operations at the Vista Gold Plant." 


Vista Gold Plant 

The Vista Gold Plant has a nameplate capacity of 150 tonnes per day and can generate up to 90 ounces of gold per day based on monthly average grades ranging from 17g/t to 20g/t gold as achieved in 2018 calendar year. Initially the Vista Gold Plant will operate at a rate of 80tpd at commencement of commercial production, and is targeting a production rate of 120tpd within a period of six months. The Vista Gold Plant has been both permitted and designed to increase its capacity to 350tpd with minimal capital outlay, and can be readily upgraded when warranted.


The Company has retained the gold processing and plant development team which was in place at the time of the acquisition of Andina Resources Ltd (refer to ASX release dated 12 July 2018). The highly experienced Peruvian team will operate the Vista Plant for Titan brings a depth of processing knowledge and has an excellent reputation which will allow the company to acquire high-grade ore from licensed artisanal miners in the region. 


The Titan team has, and will continue to produce environmental and socially responsible gold.


During the permitted trial period, the Company completed full operational trials and wet commissioning work, from which it the Vista Plant produced an estimated 700 ounces of gold from material treated. Acquisition of mineralised material continued during the trial and commissioning phase of the Vista Plant, where a protracted rainy season lasting from early January to mid April 2019, has in general, impacted gold production from artisanal miners in the country, and particularly, in areas producing higher-grade gold bearing material. In southern Peru, the average gold grades and available tonnage of material were lower than usual during this 4 month period.


In the medium to long term, growth to the Vista Plant’s production profile will be achieved by leveraging on Titan’s presence and landholdings within the approximately 100km long Nazca–Ocoña metallogenic belt to define significant mineral resources. Titan continues to assess opportunities to advance the Company’s mine development strategy, and is actively working toward permitting of priority targets for 2019 drilling.


Click here to view the full announcement

PRESENTATION

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QUARTERLY

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Quarterly Activities Report Three Months Ended 31 March 2019 

ASX Announcement 30 April 2019 


HIGHLIGHTS 

  • Proposed Merger with Ecuador focused Core Gold Inc. (TSX.V: CGLD) 
    • Creates an emerging Latin America focused gold explorer, developer and producer with a large gold portfolio in Ecuador and Peru: 
    • Existing Foreign resource estimate base to build on, and creates a portfolio of highly prospective exploration projects across Ecuador & Peru 
  • Titan to Acquire the Coriorcco Gold Project, Peru 
  • Titan executes Binding Agreement on the Las Antas Gold Project earn-in, Peru


Titan Minerals Limited (ASX: TTM) (“Titan” or “the Company”) is pleased to provide its quarterly activities report for the quarter ended 31 March 2019.


Corporate 

Titan Minerals and Core Gold to Combine 

On 25 February 2019 Titan and Core Gold Inc. (TSX-V: CGLD, OTCQX: CGLDF) (“Core Gold”) announced that the companies had entered into a binding arrangement agreement which was subsequently amended by an amending agreement dated March 10, 2019 (as amended, the "Arrangement Agreement"), pursuant to which Titan will acquire all of the issued and outstanding Core Gold common shares by way of a share exchange (the “Merger”). The Merger will create a diversified Latin America focused ASX-listed gold company with a robust portfolio of exploration, development and production assets in both the emerging mining jurisdiction of Ecuador and the well-established mining jurisdiction of Peru. The Company will have a strong pipeline of growth opportunities.


Las Antas Gold Project Acquisition 

On 14 January 2019 Titan executed a binding Earn-In Agreement with Management Environmental Solutions S.A, a privately held Peruvian company, ("Vendor") to acquire up to an 85% ownership interest in the Las Antas Gold Project in southern Peru. Upon the satisfaction of certain conditions, the Company will be granted an exclusive option to acquire an initial ownership interest of 60% in the Las Antas Gold Project and further options to acquire up to an additional 25% ownership interest in the Las Antas Gold Project (being a total of up to an 85% interest in the Las Antas Gold Project). Refer to the ASX release dated 14 January 2019 for Key Terms.


Coriorcco Gold Project 

Acquisition Subsequent to the reporting period, Titan executed a binding agreement (“Cession Agreement”) for an exclusive right to hold title and operate a 100% interest in the Coriorcco Gold Project located in Southern Peru (“Project”). The Cession Agreement is for a 10-year term, with an option to extend for eight years, pursuant to which payments include a US$100,000 advance to be offset against future production payments fixed for the first three years for any gold production from the Project and production payments subsequently varying with gold grade in accordance with the key terms outlined in the ASX Announcement dated 23 April 2019.


Cash and Working Capital 

As at 31 March 2019 the Company had a cash position of $3.94M.


Core Gold Arrangement Agreement 

Under the terms of the Arrangement Agreement, Core Gold shareholders will receive 20 (twenty) ordinary shares of Titan ("Titan Share") for each common share of Core ("Core Share") held (the "Core Exchange Ratio"). Holders of options and warrants exercisable into Core Shares will receive replacement options and warrants to acquire Titan Shares on comparable terms as their current options and warrants, taking into account the Core Exchange Ratio. The Core Exchange Ratio is subject to adjustment in the event of a split or consolidation of the issued and outstanding Titan Shares prior to the effective time of the Arrangement. Upon closing of the Arrangement, Core will become a wholly-owned subsidiary of Titan.


On 12 March 2019 Titan and Core Gold agreed to amend the terms of the Arrangement Agreement where Titan Agreed to purchase 9,151,363 Core Shares on a private placement basis, at a price of C$0.44 per share for total subscription proceeds of approximately US$3 million (the “Core Private Placement”).


Under the amended Arrangement Agreement Titan and Core Gold have agreed to the following: 

  • termination of the go-shop period in which Core Gold was permitted to solicit superior proposals; 
  • increase the break fee payable by Core Gold to Titan in the event of a superior cash proposal from C$500,000 to C$3,000,000; 
  • require Titan’s consent for any disposal by Core Gold of non-core assets prior to closing; 
  • require Titan’s consent for any private placement of the shares of Core Gold, other than a private placement of up to US$8 million at not less than C$0.44 per share; and 
  • all of the directors and senior management of Core Gold (other than former CEO Keith Piggott) holding in aggregate 38,041,981 Core Gold shares, representing 25.1% of the currently issued and outstanding common shares of Core Gold and 23.7% following the Core Private Placement, entering into customary voting and support agreements that require those Directors and senior management to vote in favour of the Merger at the Core Gold shareholder meeting to be convened to approve the Merger.


Together with Titan’s 5.7%, these shareholders have agreed to vote their 29.4% collective common share position in Core in favour of the Merger.


The Merger will be affected by means of a statutory plan of arrangement under the provisions of Division 5 of Part 9 of the Business Corporations Act (British Columbia) between Core Gold and Titan. 


Core Gold Private Placement 

On 25 March 2019, Titan announced successfully closing the US$3 million Core Private Placement as part of the amending agreement announced 12 March 2019. To facilitate the Core Private Placement, Titan entered into a secured debt facility with a group of sophisticated and professional investors (“Loan Facility”). The Loan Facility makes available to Titan up to US$3,000,000 of financing and Titan has drawn down the full amount in order to purchase 9,151,363 common shares of Core Gold on a private placement basis at a price of C$0.44 per share.


The material terms of the Loan Facility are as follows: 

  • Amount: US$3,000,000 
  • Interest: 15% interest per annum 
  • Security: Vista Gold S.A.C. and Core Private Placement shares
  • Repayment: earlier of 21 days from completion of Titan Core Gold plan of arrangement or 6 months from the draw down date, extendable to 9 months at Titans election with a minimum repayment of 5 months interest payable if repaid prior to five months from the draw down date.


Click here to view the full announcement

PROJECTS

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Projects

Attractive Asset Portfolio

  • Strong portfolio of mining assets across the value chain, from mineral exploration and production to mineral processing infrastructure
  • Complimentary assets across the mining spectrum ensuring full vertical integration across the value chain
  • Leverage respective board and management relationships and experience in Peru
  • Significant potential for operational synergies – to be further explored
  • Significant potential for operational synergies – to be further explored

Peru and Independent Gold Mining

  • Government data shows there are in excess of 200,000 independent artisanal miners working across Peru, accounting for at least 20% of gold production = equating to $3 billion per year.
  • The Government actively encourages responsible independent artisanal mining activities. In 2012 the Government introduced a “formalization” process to put an end to the extraction of illegal gold, the process was further extended in 2017 to encourage more independent artisanal miners to become formalized.
  • Not enough national mineral processing plants in place to service the formalized independent mining community.
     Titan sees this type of dynamic growth in the sector to be a unique and significant business opportunity and intends to provide a solution that will meet all stakeholders needs.


WWW.TITANMINERALS.COM.AU

ABOUT

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About

Emerging Major South American Gold Producer

  • Exposure to quality gold mining assets and infrastructure in Peru
  • Strategically located gold processing plants:
    • The Vista gold processing plant in Southern Peru and;
    • The Tulin gold processing plant in Southern Peru
  • Strategy to mill wholly-owned ore and retain ability to process high-grade artisanal ore.
    • Processing artisanal ore de-risks production related capital expenditure requirements
    • Wholly owned ore production increases margins and provides leverage to gold price
  • Established track record of production and sales from multiple operations, and significant in-house mining, processing and metallurgical experience.
  • Strong network and presence in Peru with senior management having been in-country for ~10 years
  • Board focussed on significant cash flow growth from production, continued project development and regional consolidation



WWW.TITANMINERALS.COM.AU



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