WTR Demerger and Delisting
At the Annual General Meeting of World Titanium Resources Ltd (WTR) held on 23 December 2016, the Shareholders of approved the resolution to demerge its African assets on 30 December 2016 by distributing all of the shares it holds in World Titane (being 100% of World Titane’s issued share capital) to Shareholders on a pro-rata basis by way of an equal capital reduction pursuant to the s. 256C(1) of the Corporations Act. Public announcements related to the Demerger include: 23 Dec 2016, 21 Nov 2016a and 21 Nov 2016b.
As part of the demerger, Shareholders also retained their Shares in WTR and approved the delisting of WTR from the ASX on 30 January 2017. The intention is now to either deregister the company or be subject to a members voluntary winding up as it holds no other Australian Assets.
Following the above restructuring exercise and the demerger of the African Assets of World Titanium Resources Limited, the ex WTR Shareholders own 100% of World Titane Holdings Ltd (WTH), which owns 100% of the Toliara Sands Project.
WTH is a public company incorporated under the Mauritius Companies Act 2001 with less than 100 shareholders, holds a Category One Global Business Licence under the Mauritius Financial Services Act 2007 and 95.75% of the total issued shares are held by two major shareholders. Corporate information relevant to shareholders of WTH includes: WTH Corporate Structure and WTH Corporate Service Provider. The Constitutions of both WTR Limited and WTH can be found under the Investors page.
Toliara Sands Project
World Titane Holdings is developing the Tier 1 Toliara Sands Project north of the port of Toliara in south-west Madagascar. The Ranobe Mine is projected to produce 600,000tpa of ilmenite and 65,000tpa of zircon rich concentrate per annum over an initial 20 year mine life. This first phase of development utilises around 27% of the 884 million tonne of Mineral Resource defined at Ranobe.
The overall THM grade of 6.2% for the Ranobe Mineral Resource is high by minerals sands industry standards and the initial Ranobe mine plan focuses on an Ore Reserve averaging 8.2% THM, one of the highest in-situ ore values in the sector. With no overburden and very low slimes (<5%) simple dry mining can be utilised.
The heavy mineral at Ranobe consists predominantly of ilmenite making up approximately 90% of the final products. The project also benefits significantly from the presence of much higher value zircon and rutile which, as a zircon rich concentrate, contribute about 10% of the product volume and around 30% of the projected revenue. The ilmenite and zircon rich concentrate can be easily separated from the ore utilising standard equipment and existing infrastructure can be leveraged to minimise the initial development capital.
A Definitive Engineering Study (DES) was completed in August 2012 confirmed that a low capital investment, low technical risk and simple mineral sands operation can be built using proven technology. A Definitive Feasibility Study is currently underway to evaluate an increased project scale at 12 Mtpa, and to provide updated capital and operating costs.
The Mineral Resource at Ranobe could potentially sustain a life of more than 60 years at the planned production rate for the Ranobe Mine demonstrating the very long life of the Tier 1 Toliara Sands Project.