Titanium Sands courts investors with progress at Mannar heavy mineral project

• Titanium Sands to hold roadshow to present project updates for investors in Melbourne and Sydney 
• Company has secured key terms of reference, retention licences and finalised funding solutions
• Discussions to start on offtake and joint ventures while progress is made towards securing an IML

Special Report: Titanium Sands has made significant progress at the Mannar heavy mineral sands project in Sri Lanka in recent months and will wave the flag before investors in Melbourne and Sydney this week.

During a promotional roadshow to investors and brokers, the company will present the project and provide an overview of the next steps to finalise approval of the key Industrial Mining Licence.

Notable points of progress that Titanium Sands (ASX:TSL) will touch on include receiving the Terms of Reference to progress environmental studies, retention licences for the high-grade zone, finalisation of corporate funding solutions with its largest shareholders and progress of environmental studies.

“With offtake and joint venture discussions to commence along with a pending IML, the project is rapidly developing into a HMS producer,” managing director Dr James Searle added.

Making progress

Earlier this month, the company secured a loan agreement with sophisticated and professional shareholder investors for a loan of up to $600,000 to be made available in two equal tranches.

This will be used to fund finalisation of environmental studies and progress the IML.

In March, TSL received the key Terms of Reference from Sri Lanka’s Central Environment Authority that contain the environmental, heritage, social and economic requirements needed for an Environmental Impact Assessment.

This is expected to be submitted in mid-2025 for review by the Geological Survey and Mines Bureau with approval being key for the award of the IML.

Another key update was the grant of one-year retention licences in late May that cover the high-grade zone for the Mannar project.

The extension to December 2025 gives the company time to complete the environmental studies.

Watch: Titanium Sands nabs key retentions for Mannar project

Mannar project

The Mannar heavy mineral sands project has a massive 318Mt resource at 4.17% total heavy minerals (THM) containing ilmenite, which accounts for the majority of the asset’s mineralisation.

Ilmenite, the main feedstock for producing titanium dioxide (TiO2), is used as a pigment or opacifier in a wide range of daily products such as paints, fabrics and cosmetics, and serves a role in high-performing metal parts like aircraft engines.

It is also growing in prominence for its use within green-energy applications like advanced coatings to improve the energy efficiency of buildings as well as solar panels and wind turbines.

Under a scoping study completed in 2023, a stage 1 development at Mannar will be capable of delivering NPV of $545m and IRR of 52% for a low capex of $122m and payback period of just under two years.

The 4Mtpa operation will produce globally competitive ilmenite over a mine life of 20 years.

This article was developed in collaboration with Titanium Sands, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.