SANTIAGO, Chile, July 12, 2005 (PRIMEZONE) -- White Mountain Titanium Corporation (Pink Sheets:WMTM) announced today that it has completed a $5,000,000 private placement with a major European institutional investor. The deal included 6,250,000 shares of Series A preferred stock, each share convertible into one common share, and 6,250,000 warrants to purchase common stock, at an exercise price of $1.25. The preferred shares do not pay a dividend.
According to Michael P Kurtanjek, President of White Mountain, "The completion of this financing is a major milestone for our company, as we proceed toward our goal of becoming a major producer of TiO2 concentrate for the $8 billion annual titanium pigment market." The company will use the proceeds of the financing to complete a bankable feasibility study on its 130,000,000 ton rutile deposit in Region III of Chile. The Company also intends to pursue a more senior listing for the trading of its common shares, said Mr. Kurtanjek.
The company also announced today the appointment of Mr. Brian Flower of Vancouver, BC as its Chief Financial Officer. Mr. Flower served in the same capacity for Viceroy Mining from 1993 to 2000, and has many years of related experience in other early stage developing mining enterprises. "We are thrilled to have someone of Brian's experience and ability in this role," said Mr. Kurtanjek.
White Mountain Titanium Corporation, based in Santiago, Chile, is developing a world class titanium deposit about 30 kilometers from the port city of Huasco in Region III of Chile. The deposit has been defined by extensive drilling and contains in excess of 130,000,000 tons of mineralization grading 2.2% TiO2 as rutile. Rutile is a higher grade and purer form of titanium mineralization than ilmenite, which is the form of most titanium sands found throughout the world.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction, and trends in the industry in which the Company operates.