Titanium Sands locks in corporate funding as key milestones near for Mannar Island

• Titanium Sands has locked in a corporate loan as it progresses key initiatives for its Mannar Island heavy mineral sands project
• It comes after a meeting with government officials in Sri Lanka
• Environmental studies are close to completion, with an industrial mining licence close to being issued

Special Report: Titanium Sands has locked in $800,000 in corporate funding as it works with the Sri Lankan Government to get its Mannar Island project off the ground.

The dredge mining project could be transformational for the Sri Lankan economy, with a scoping study in 2023 outlining plans to deliver a 20 year heavy mineral sands operation at an initial capital cost of just $122m.

And Titanium Sands (ASX:TSL) has seen strong support from government departments in a meeting with the Ministry of Finance to address the timing of the issue of an Industrial Mining Licence for the project.

Environmental studies are nearing their conclusion, with the Sri Lankan Board of Investment, Geological Survey and Mines Bureau and Central Environment Authority all confirming their support for the progress of the IML at the meeting.

Both are key steps for the progress of the landmark project.

“The support shown by the various Government departments at our recent meeting in Colombo is a positive development as the environmental studies near completion and the IML is close to being issued,” TSL managing director James Searle said.

“The Government is in support of near-term projects in Sri Lanka to build revenue and create industry to assist with the country’s economic rebuild.

“The Mannar Island Project is a robust and financially beneficial project to the Government and the people of Sri Lanka and we welcome the ongoing positive relationship that has now been developed.”

Corporate funding locked in

It comes as TSL locks in $800,000 in a two tranch loan from major shareholders through CPS Capital, the first of which was advanced yesterday.

The second $400,000 tranche will be advanced on December 13, with a 10% interest rate and market standard terms, assuming shareholders approve the arrangement.

The company says the funds raised from the note will be used to finalise environmental studies, progress the IML process, general operating expenses and for working capital.

Retention licences were recently granted for four exploration permits which form the high grade, ilmenite rich started zone outlined in the 2023 Mannar Island study.

Reporting on a recent meeting with landowners in its last quarterly report, TSL said they remain keenly in support of the project.

This article was developed in collaboration with Titanium Sands Limited, 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.