substantial shareholder increases stake

As well ......

Director - Darren Morcombe has lifted his holding in the company by acquiring 398,346 ordinary shares at $0.17 per share from an Entitlement Issue launched in April.

----------------------------------------------------------


Monday, May 13, 2013 by Bevis Yeo


World Titanium Resources substantial shareholder increases stake

World Titanium Resources (ASX: WTR) substantial shareholder Mineral Deposits Limited has increased its stake in the company to 16.13% from 14.9%.

Mineral Deposits had acquired more than 3 million shares in on-market purchases from 12 January 2012 to 27 July 2012.

It acquired a further 3.58 million shares through World Titanium’s fully underwritten non-renounceable pro-rata entitlement issue.

Investor interest has been strong in World Titanium with shareholders taking up 90% of the 18.6 million shares on offer from its recent entitlement issue. It has also gained Blakeney LLP and JP Morgan as substantial shareholders.

This reflects the size, the grade and value accretion of the proposed transaction with Sichuan Lomon Titanium, a major Chinese titanium dioxide pigment producer.

Under the deal, Lomon will contribute the US$300 million capital required to develop an 800,000 tonne per annum ilmenite mine at the Tier 1 project.

The joint venture would secure all funds required for a much larger initial development at Ranobe, and eliminate the need for World Titanium to raise any development equity or debt capital.

It would also secure an offtake commitment for 80% of the ilmenite that the mine would produce, sufficient to cover all operating costs in almost any price environment.

This dramatically reduces the financing and offtake risk for the project.

World Titanium had $2.5 million in cash as of 31 March 2013.

http://www.proactiveinvestors.com.au/companies/news/43185/world-titanium-resources-substantial-shareholder-increases-stake-43185.html