Argex Titanium Inc. ARGEF

RE:RE:RE:RE:RE:RE:from The Disruptive Technology Journal

[MoneyManager101]

Interesting parts of recent pope report: Two teams of external industry experts were engaged by the company’s leading debt and equity financing sponsors to fund $300 million of project CAPEX. The technical due diligence comprised an end-to-end evaluation of both technology and implementation, and took over five months to complete. This process was initiated by the financing consortium with independent industry experts as a prerequisite to funding the Valleyfield plant. Unlike a feasibility study undergone by the company, the technical due diligence is a significant and critical milestone for release of funds. Scale-Up Risk Downsized: The important answer sought from this technical exercise was to determine if the operating pilot plant in Valleyfield could be scaled up to an operating industrial (read: commercial) plant. The due diligence teams evaluated Argex’s technological process (CTL), plant construction methodology, marketing and operations plans, capital budget, manufacturing and procurement process, and operating financial model, which must have satisfied the scale-up and execution risks. In addition to the thorough analysis, the teams compared these components to industry and technology benchmarks. Reflecting this thorough and deep level due diligence, we feel confident that the Scale-Up risk has been checked off.101good weekend chew