TUCSON, Ariz., April 10, 2012 (GLOBE NEWSWIRE) -- Titan Iron Ore Corp. ("Titan", "we", the "Company") (OTCBB:TFER) is pleased to announce that through an Asset Purchase Agreement it has closed on its option to purchase the Strong Creek and Iron Mountain (the "Wyoming Iron Complex") Iron-titanium mineral project located in Albany County, Wyoming. The Wyoming Iron complex consists of mineral leases and unpatented mining claims aggregating approximately 683 acres and was wholly owned by Wyomex LLC ("Wyomex"), a Wyoming limited liability company.
Titan earlier reported that effective June 30, 2011 it had entered into the option agreement with the exclusive right and option to acquire a 100% undivided legal and beneficial interest in the property. The purchase price is $7,000,000 payable over time, secured by a Promissory Note and Mortgage, and consists of a 4.5% gross metal value ("GMV") royalty, payable prior to production as a minimum advance royalty of $62,500 every 6 months (as index-adjusted for inflation), and upon commercial production from the property, a minimum of $150,000 per year. Once the full $7,000,000 has been paid to Wyomex, the GMV royalty reduces to 1.5% on metals production. By entering into and closing a definitive Asset Purchase Agreement the Company has now taken title to the property.
Last month (March 14, 2012) the Company reported that the assay of the last hole (hole #3) of its Phase I drilling program on the Strong Creek portion of the Wyoming property, along with the assay results of the first two holes, strongly indicate that potentially economic grades of iron occurring as magnetite and titanium ilmenite exist throughout virtually the complete length of the three holes drilled by Titan.
Andrew Brodkey, President of Titan, commented: "Titan has reached a major milestone by virtue of closing the option and acquiring title to the Wyoming Iron Complex. The terms for this purchase are very favorably oriented towards the Company—we were able to buy the project outright through very little in the way of cash payments at closing, Rather, payments towards the purchase price are spread over time and largely consist only of minimum advance royalties of $125,000 per year (as adjusted for inflation), with no dilution to existing shareholders since no stock is involved. Now the Company can focus on "activities on the ground" which for 2012 are planned to include additional drilling and metallurgical work.
About Titan Iron Ore Corp.
Titan is based in Tucson, Arizona and trades on the OTC Bulletin Board under the trading symbol "TFER". The Company is focused on the acquisition and development of iron ore exploration and development mining properties located in regions that enjoy stable politics, sound economies and friendly business environments. Currently the Company has exercised its option to acquire the Wyomex Iron Complex project in Albany County, Wyoming, USA.
On Behalf of the Board,
TITAN IRON ORE CORP.
/s/ Andrew Brodkey
Andrew A. Brodkey, President and CEO
Forward Looking Statements
This news release contains forward-looking statements. Forward looking statements in this news release include: that there are indications of potentially economic grades of iron occurring as magnetite and titanium; and that we plan additional drilling and metallurgical work in 2012. There can be no certainty regarding the ability of the Company to achieve these results. Factors which may delay or prevent these results from coming to fruition include weather and access impediments; inability of consultants to complete the exploration programs, and inability of labs and third parties to deliver results. As well, results may differ as a result of geological data resulting in changed plans for exploration, our potential inability to contract equipment and labor, our inability to finance our plans, current economic conditions and the state of mineral exploration and mineral prices in general. Even if we find economic grades of minerals, it is not an assurance that we can profitably extract the minerals. As a result, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws. Readers should also refer to the risk factors of junior mining exploration companies as disclosed on EDGAR to understand the many risks facing our company.