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Tiomin Resources Inc. ("Tiomin") (TSX:TIO) is a mining company traded on The Toronto Stock Exchange with a focus on the exploration and development of base metals, precious metals, diamonds and titanium mineral sands projects.
Tiomin has significant funds available for its projects, a strong management team, and a very experienced board that has more than 200 years of combined and relevant experience as geologists, mining engineers, CEOs, lenders, investment bankers and legal counsel.
Our strategy is clear: to create long term value by realizing a return on our current projects as well as seeking an accretive transaction that marries Tiomin's cash with producing or near-producing assets.
On January 18, 2010, Tiomin and Vaaldiam Resources Ltd. ("Vaaldiam") entered into a definitive arrangement agreement for Tiomin to acquire all of the outstanding common shares of Vaaldiam in an all-share transaction on the basis of 0.80 Tiomin common share for each Vaaldiam common share. Following completion of the Transaction, and subject to regulatory approvals, Vaaldiam will be a wholly-owned subsidiary of Tiomin with Vaaldiam's existing shareholders owning approximately 30% of Tiomin.
The resulting company will be a well-capitalized, Brazil-focused diamond producer with the following attributes:
• Immediate Production: Diamond and gold production to resume at the
100%-owned Duas Barras mine, which operated profitably prior to being placed
on care and maintenance as a result of the global financial crisis.
• Strong Balance Sheet: Tiomin will have approximately $11.3 million in
cash to fund exploration and development and settle Vaaldiam's outstanding
liabilities.
• Production Growth: Tiomin plans to grow Vaaldiam's production through
the staged resumption of production at its two 100% owned diamond mines and
the expansion of resources through exploration and development of the mines'
exploration properties.
Production is projected to be:
• 20,000 carats in 2010
• 40,000 carats in 2011
The anticipated development of the Braúna kimberlite project, which is currently conducting a bulk-sampling program, is expected to significantly add to this production in the coming years.
• Advanced development pipeline: In addition to becoming South America's
largest diamond producer, Tiomin will hold interests in three advanced-stage
kimberlite deposits in Brazil and Canada and also own a large exploration
database of kimberlite occurences in Brazil.
• Experienced in-country teams: Tiomin will benefit from highly-
skilled and experienced in-country operational and exploration teams in
Brazil and Canada, in addition to a strengthened management team with
significant industry experience.
The combination of Tiomin and Vaaldiam will create a leading diamond production, exploration and development company with a pro forma market capitalization of $20.7 million based on Tiomin's closing share price of $0.03 on Friday, January 15, 2010. The company is projected to have the ability to materially fund the advanced-stage kimberlite exploration and development costs from internally generated cash flow, thereby reducing further dilution to its shareholders. The combined company will have strong management expertise and the financial capacity to realize the value potential of its exploration portfolio and to capitalize on future acquisition and consolidation opportunities.
Pukaqaqa copper-gold property in Peru - No material exploration work was carried out at Tiomin's 49%-owned Pukaqaqa copper-gold property in 2008 and 2009 due to general economic uncertainty. Tiomin continues to work with its partner, Milpo, to develop an appropriate exploration plan. The project remains highly prospective and Tiomin is optimistic that work aimed at expanding resources will resume when market conditions return to normal.
Tiomin Kenya Limited - In October 2009 Jinchuan terminated the investment agreement citing a previously unraised concern regarding the Disclosure Schedule. Tiomin has written off all costs associated with the Kwale project and is considering its alternatives.
Flemish Gold Corporation - Tiomin owns 30.8% of Flemish Gold Corporation, a private related-party company focused on gold exploration in sub-Saharan Africa.
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