SANTIAGO, Chile, Dec. 9, 2013 (GLOBE NEWSWIRE) -- White Mountain Titanium Corporation ("White Mountain" or the "Company") (OTCQB:WMTM) is pleased to announce that it has signed a Binding Memorandum of Understanding ("MOU") with a group of existing shareholders (the "Shareholder Group") to provide US$ 10 million in equity financing which the Company will use to complete the Environmental Impact Study ("EIS") and advance the Cerro Blanco project to Final Engineering Feasibility. The financing is comprised of two tranches: a US$2 million first tranche scheduled to close on or before December 13, 2013 and a US$ 8 million second tranche scheduled to close by the later of April 15, 2014 or within 30 days following completion of the EIS. The Company has received the first of two US$1 million instalments from the first tranche.
Under the terms of the MOU, the first tranche consists of 5,714,286 units priced at US$ 0.35 per unit, each unit comprised of 1 common share and 1 common share warrant. Each first tranche warrant is exercisable at US$ 0.45 per share and has a term to December 31, 2016. The second tranche consists of 20,000,000 units priced at US$ 0.40 per unit, each unit comprised of 1 common share and 0.9 common share warrant. Each full second tranche warrant is exercisable at US$ 0.55 per share and has a term to December 31, 2017. As part of the transaction, the Company's Board of Directors will be expanded to 7 with participants in the MOU nominating 3 members to the Board.
Further particulars on the financing are set out in a Form 8-K which has been filed with the SEC and forms an exhibit to this news release.Commenting on these developments, Michael Kurtanjek, President and Chief Executive Officer, said, "In an economic environment where financing small resource companies such as ours remains a considerable challenge, we are pleased that existing shareholders continue to realise the underlying value of our Company and its Cerro Blanco project and have provided financing necessary to take the project to final engineering feasibility. With this financing in place, management will be now able to focus on implementing the work schedule as detailed in the Company's news release of September 17, 2013. By agreeing to the terms of the MOU, the Company has maintained full ownership of all of its assets for the benefit of all shareholders, rather than an external entity." Mr Kurtanjek went on to say, "Once the EIS has been completed, the Company will seek to expand corporate development opportunities, principally in Asia, for strategic partnerships, additional off-take agreements, technical and supply agreements and construction finance. To this end, the Shareholder Group is well positioned to assist the Company with identifying and realizing corporate development opportunities."