TUCSON, Ariz., July 27, 2011 (GLOBE NEWSWIRE) -- Titan Iron Ore Corp. ("Titan", "we", the "Company") (OTCBB:TFER) is pleased to announce that, effective July 12, 2011, it entered into an option agreement (the "Option") with Globex Mining Enterprises Inc., a Canadian company listed on the Toronto Stock Exchange ("Globex"). The agreement grants the Company the option to acquire a 100% interest in 144 mining claims located in the Labrador trough area (the "Property") of Quebec, Canada.
In consideration for the Option and the exclusive right to acquire the Property, Titan will pay to Globex the sum of US$40,000. Upon exercise of the Option Titan must issue 6,000,000 Titan common shares to Globex and make total cash payments of $4,000,000 over 60 months. Globex retains a Gross Metal Royalty ("GMR") on production. An Advance Minimum Royalty ("AMR") payment shall commence 72 months from the date of initial payment in the sum of $100,000 per year, which will be deducted from any future production royalty payments, until such time the property enters commercial production. Upon commencement of commercial production, the annual AMR shall convert to a 3% GMR on iron ore and other mineral materials. In no event shall the GMR be less than $100,000 in any given calendar year.
The Labrador trough is a region that is currently home to number of large producing iron mines including those operated by Consolidated Thompson Iron Mines and Iron Ore Company of Canada as well as five recently announced projects currently under development or in various stages of exploration.
Titan also reports that effective July 22, 2011, Ed Mulhern has resigned from the board of directors and the Company has appointed Ronald Richman to fill the seat as an independent director. Mr. Richman received his Doctorate and Master degrees in Chemistry at the University of Colorado and has completed the Wharton Executive Program. While with IBM, Mr. Richman managed a global business unit and was heavily focused on worldwide markets and international business. The company would like to thank Mr. Mulhern for his years of service.
The Company successfully completed its capital restructure, which was previously approved by its board of directors on May 25, 2011. As of today's date there are 49,737,000 issued and outstanding shares in the capital of Titan.
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 of mining properties located in regions that enjoy stable politics, sound economies and friendly business environments. Currently the Company has an option to acquire the Wyomex Iron Complex project in Albany County, Wyoming, USA and an option to acquire the Labrador Trough project in Quebec, Canada.
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 we will be able to acquire the Labrador property; that the Labrador property is prospective for iron ore; and that we can make necessary payments to complete our option purchase. 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 being unable to reach agreement with other parties, inability to obtain approvals by regulatory agencies; our potential inability to raise the financing necessary to exercise the option or to fulfill obligations. Results may differ as a result of geological data resulting in changed plans for exploration, our potential inability to contract equipment and labor, current economic conditions and the state of mineral exploration and mineral prices in general. 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.