MONTREAL, March 19, 2015 /CNW Telbec/ - Argex Titanium Inc. (TSX: RGX) ("Argex"), an emerging producer of high-grade titanium dioxide (TiO2) used as white pigment in paint, plastic, paper, cosmetics and other applications, has signed a letter of intent ("LOI") with PVS Chemicals a global manufacturer, distributor and marketer of chemicals, and PVS's wholly owned subsidiary, Fanchem Ltd. ("PVS"), to distribute 100% of Argex's iron by-products to be produced at Argex's first industrial scale titanium dioxide (TiO2) plant to be located in Valleyfield, Quebec.
This LOI will act as a guideline for the negotiation of a definitive off-take and distribution agreement between Argex and PVS, which shall be negotiated over the next several months on an exclusive basis.
"PVS looks forward to negotiating a definitive agreement with Argex and growing this valuable strategic business partnership in the years to come," stated Jeff Inkes, Vice President and General Manager of Fanchem Ltd.
"A significant portion of Argex's cost advantage comes from the sale of our iron by-products," stated Roy Bonnell, president and CEO of Argex Titanium. "Recent test results for Argex's iron products indicate that they surpass the current technical requirements of the industry. We are pleased to work with PVS, a proven market leader as we grow our business."
About Argex Titanium
Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications. The company's unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex's process provides a significant cost and environmental advantage over current legacy TiO2 production methods. The company's primary near term goal is to rapidly advance toward a 50,000 tonne per annum production module as a first step in its goal to transform the 5.7 million tonne per annum TiO2 market.
