This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

White Mountain Enters Into LOI With Korean Companies To Fund Cerro Blanco Project

SANTIAGO, Chile, June 29, 2012 /PRNewswire/ -- White Mountain Titanium Corporation ("White Mountain" or the "Company") (OTC Bulletin Board: WMTM) reports that it has entered into a letter of intent (" LOI") with Hyundai Welding Co., Ltd., (" Hyundai Welding") and Korea Resources Corporation, (" KORES") which contains binding provisions whereby Hyundai Welding and KORES are required to provide the Company with US$10,000,000 in funding for the Cerro Blanco project ("Cerro Blanco") in Chile in three installments of US$2,000,000 on or before July 7, 2012, US$3,000,000 on or before August 7, 2012, and US$5,000,000 on or before August 31, 2012.  In the event that we are unable to enter into a definitive agreement with Hyundai Welding and KORES which reflects the proposed nonbinding provisions of the LOI by August 31, 2012, or if the LOI is terminated, any funds advanced under the LOI will be converted into shares of our common stock based upon the three-month average closing price of the stock during April, May and June 2012, as provided by OTC Markets.  The common shares which would be issued by us upon this conversion will not have been and will not subsequently be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.  The LOI will expire on August 31, 2012, or upon execution of the definitive agreement.  The LOI may be terminated by mutual consent of the parties, by us if either Hyundai Welding or KORES fails to make the initial cash advances, or by either party if it decides not to proceed with the transaction.

Under the definitive agreement Hyundai Welding and KORES would form a joint venture which would purchase a 30% interest in Sociedad Contractual Minera White Mountain Titanium, our wholly owned Chilean subsidiary, in return for US$60,000,000.  If the definitive agreement is ultimately closed, the cash advances paid under the binding terms of the LOI would be credited against this purchase price for the shares of the subsidiary.  The remaining US$50,000,000, subject to adjustment depending upon the outcome of the final feasibility study, would be payable in one or more installments beginning 105 days following the completion of the final feasibility study on Cerro Blanco. 

The definitive agreement would also provide for the joint venture to purchase quantities of titanium concentrate produced from Cerro Blanco in proportion to its equity ownership in our Chilean subsidiary. As well, Hyundai Welding and KORES have offered to provide support at cost to advance Cerro Blanco to final feasibility through the provision of engineering services, engagement of technicians and purchase of facilities and equipment in Korea or elsewhere.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,932.80 +17.73 0.10%
S&P 500 1,967.02 +2.34 0.12%
NASDAQ 4,415.2710 +19.0670 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs