NewsCALGARY, Alberta, May 28, 2020 (GLOBE NEWSWIRE) -- Titanium Corporation Inc. (the Company or Titanium) (TSX-V: TIC) today released its results for the three-month period ended March 31, 2020. In the first quarter of 2020, the COVID-19 pandemic and the collapse of oil demand and prices introduced unprecedented uncertainties for industries and economies globally. These include sectors directly related to the Companys Creating Value from Waste technology (CVW) at the Canadian Natural Resources Limited (Canadian Natural) Horizon site (the Project), including Canadas oil sands industry, the global mineral sands industry and the Canadian economy. The duration and the extent of the impact of these events is not known but could adversely affect the progress and timing of the Project. In response, the Company has taken measures to protect its balance sheet by reducing costs and conserving cash over the months ahead. During the first quarter of 2020, the Company and Canadian Natural joint project team has continued work on the Project, performing post-Front End Engineering Design (FEED) reviews and optimization of the Project as well as continuing the on-going minerals analysis programs. In parallel, the Company has been providing updates to the Alberta and Federal government agencies who have awarded grant funding to the Project and are working with them toward funding contracts for the detailed engineering phase of the Project. During this very challenging period, our team is continuing to work with our industry partner and the government funding agencies to advance our Project, commented Scott Nelson, Titaniums President and Chief Executive Officer. As governments plan next steps and new programs to spur economic recovery, we believe our CVW technology can provide important environmental and economic benefits that will assist with the recovery of a resilient and sustainable energy industry in Alberta and Canada. Certain highlights for the three-month period ended March 31, 2020 are set out in more detail below: The Company has been conducting technical marketing and testing programs including meeting with potential minerals processors and customers, visiting their facilities and providing minerals samples for customer testing. These activities have been largely suspended due to the COVID-19 pandemic and will be resumed when the relevant countries and businesses reopen and resume normal operations. The Company continued to advance the contracting with government funding agencies for grant awards for the next phase of the Project. This has included Project updates regarding the impacts of the COVID-19 pandemic and the oil demand and price collapse. Funding from the government programs is subject to finalizing funding agreements which will outline the conditions under which funding would be provided. The Company implemented salary reductions in the range of 15 to 20% effective April 1, 2020 to preserve cash in response to the uncertainty created by the COVID-19 pandemic and the resulting delays to the Project. The Company is also continuing its cash conservation programs including those under which management and directors receive a portion or all of their compensation and fees in restricted share units and deferred share units (DSUs), respectively. This program is aimed to conserve cash and further align management and the Board with shareholder interests. Since the inception of the program in 2015, the Companys directors have been receiving 100% of their compensation in DSUs in lieu of cash compensation. FINANCIAL OVERVIEW Titanium is focused on achieving long-term financial success by implementing its innovative CVW technologies in commercial operations at oil sands sites. With the FEED portion of the Project completed, the Company is working with Canadian Natural on Project activities post-FEED, including engineering optimization and planning for the potential implementation of its technology at Canadian Naturals Horizon site. However, until Project activities post-FEED are completed to the satisfaction of the parties, commercial arrangements and investment decisions are made, and facilities constructed and operating, the Company expects to continue to incur losses. Currently, quarterly (income)/losses are comprised of research and development (R&D) project costs, recovery of project costs, and general and administrative (G&A) expenditures. Net (Loss) Income For the three-month period ended March 31, 2020, the Company reported net loss of $0.9 million or $0.01 loss per share. The net loss consisted of G&A ($0.5 million) and R&D ($0.4 million) expenses in the current period compared to net income of $0.5 million for the three-month period ended March 31, 2019 as the Company received Project contributions for the FEED in the prior period which exceed Project costs incurred and G&A expenses. For a development stage company and given the timing of Project contributions in the prior year, the net loss was in line with expectations. Research & Development R&D spending in the current quarter consisted primarily of compensation for technical staff, on-going minerals testing and evaluations, and preliminary post-FEED optimization engineering work. Project costs were lower by $0.1 million for the three-month period ended March 31, 2020 compared to the same period in 2019 due to the completion of the FEED Project in the first quarter of 2019. Recovery of Project costs was nil for the three-month period ended March 31, 2020 compared to $1.5 million for the three-month period ended March 31, 2019. The recovery in 2019 related to the collection of FEED contributions from ERA and Canadian Natural for the final FEED Project milestones. Based on the level of R&D, post-FEED activity R&D costs were in line with expectations. General & Administrative G&A expenses for the three-month period ending March 31, 2020 were slightly lower at $0.53 million as compared to $0.55 million for the three-month period ended March 31, 2019. There was an increase in the quarter in professional fees due to legal costs related to shareholder matters. This was offset by a decrease investor relations costs as investor relations services were provided on an as-needed basis compared to a fixed retainer in the prior fiscal period. Cash Position The Companys aggregate cash and short term investment position was $4.2 million as of March 31, 2020. The Company had $2.2 million in interest-bearing cash accounts and a $2.0 million short-term investment with a Schedule I bank in the form of a cashable GIC at March 31, 2020 as compared to $5.1 million at December 31, 2019. The decrease in cash and short-term investments of $0.9 million is the result of funding the Companys post-FEED Project activities, general and administrative and public company expenditures. With the costs reduction initiatives and delayed timing of the Project, the Company expects its current cash position will support it through the next 12-month period.