Canadian Engineering and Construction firms
Argex Titanium Inc. has recently transitioned from a mining exploration company to a near-term producer of commodities that the world needs: Titanium Dioxide (TiO2), Iron and Vanadium Pentoxide (V2O5).The plant, which will be located near the Port of Valleyfield in Quebec, is close to an existing railway infrastructure, conveniently linking the company's future plant to suppliers and customers in the North American titanium market.
shares rose on Wednesday after the company said it has issued invitations to bid to three global engineering and construction firms for the construction of its first industrial sized 50, 000 tonne per year titanium dioxide plant.
The company told investors that all three firms have successfully completed engineering, procurement and construction projects for chemical and industrial facilities, from front-end engineering design stage to completion, including commissioning.
The plant, which will be located near the Port of Valleyfield in Quebec, is close to an existing railway infrastructure, conveniently linking the company's future plant to suppliers and customers in the North American titanium market.
Argex just last month closed a $7.5 million private placement financing for due diligence costs associated with the financing of its first commerical production facility, which is expected to be commissioned next year.
The company has been busy preparing for the transformational event, after selling off nearly the entire available production from the first module of its proposed plant last October, when it signed a letter of intent with one of the world's largest chemical distribution companies.
The Quebec-based company has a proprietary mineral extraction process that allows it to produce high purity, or 99.8% pure, pigment-grade titanium dioxide directly from run-of-mine material at its deposits. It is boasting a net present value of almost $1 billion on a pre-tax basis from the Valleyfield project, according to a feasibility study released in last year's fourth quarter. Each one of the company’s modules is expected to have a maximum capacity of 50, 000 tonnes per year of titanium dioxide pigment production.
Titanium dioxide is an inorganic substance characterized by brightness and very high refractive index, making it an ideal pigment in paints, plastics and paper.
Shares of Argex advanced by 1.5 percent to 69 Canadian cents this morning.
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