MONTREAL - Argex Titanium Inc. (Argex), an emerging producer of titanium dioxide (TiO₂), has signed a letter of intent with PVS Chemicals, a chemicals manufacturer, and PVS's wholly owned subsidiary, Fanchem Ltd., to distribute 100% of the iron byproducts produced at Argex's first industrial-scale TiO₂ plant, which will be located in Valleyfield, Quebec.

This agreement will act as a guideline for the negotiation of a definitive off-take and distribution agreement between Argex and PVS, which will be negotiated over the next several months on an exclusive basis.

"PVS looks forward to negotiating a definitive agreement with Argex and growing this valuable strategic business partnership in the years to come," said Jeff Inkes, Vice President and General Manager of Fanchem Ltd.

"A significant portion of Argex's cost advantage comes from the sale of our iron by-products," stated Roy Bonnell, President and CEO of Argex Titanium. "Recent test results for Argex's iron products indicate that they surpass the current technical requirements of the industry. We are pleased to work with PVS, a proven market leader, as we grow our business."