Titanium Sands Secures License Consolidation, Eyes $M Placement for Mannar Project

Regulatory Milestones in Sri Lanka

Titanium Sands Limited (ASX: TSL) has reported notable progress in its quest to secure the Industrial Mining License (IML) for its Mannar Project, located in Sri Lanka. A pivotal presentation to the Central Environment Authority (CEA) was completed in late 2024, involving 34 key government stakeholders. This meeting, facilitated by the CEA and the Board of Investment (BOI), was a critical step in advancing the environmental approval process.

The company outlined its project scoping plan and received constructive feedback, with the CEA now drafting the Terms of Reference (TOR) that will guide the final Environmental Impact Assessment (EIA). The EIA is substantially complete, with remaining focus areas such as hydrology studies expected to be addressed once the TOR is issued. This progress is essential for the CEA to recommend the IML issuance.

License Consolidation and Tenure Security

In parallel, the Geological Survey and Mines Bureau (GSMB) has approved the consolidation of all five exploration licenses in the high-grade zone under the name Orion Minerals (Pvt) Ltd, a subsidiary entity. This consolidation was a prerequisite by the BOI to facilitate assessment of the significant foreign investment required for the project. Additionally, retention applications for four Orion licenses have been approved by the GSMB, though formal issuance remains pending due to broader administrative delays unrelated to Titanium Sands.

Managing Director Dr James Searle has engaged directly with GSMB leadership to confirm these approvals, underscoring the company’s proactive approach to regulatory compliance and tenure security.

Funding Strategy and Financial Position

Financially, Titanium Sands is preparing to complete an equity placement imminently, backed by major shareholders and corporate advisors. While terms are yet to be finalized, the company is confident in securing the necessary capital to sustain operations and advance the Mannar Project. Discussions are also underway regarding potential debt or hybrid funding facilities to provide additional liquidity if required.

Cash flow reports indicate ongoing expenditure focused on environmental studies and project scoping, with exploration and evaluation costs totaling $202,000 for the quarter. The company maintains a cash balance of $234,000 at quarter-end, with an estimated funding runway of just under two-thirds of a quarter, highlighting the urgency of the upcoming placement.

Political and Regulatory Context

The regulatory environment in Sri Lanka has been bolstered by recent political developments. The National Peoples Party, led by President Anura Dissanayake, secured a two-thirds parliamentary majority in November 2024, enabling significant government reforms aimed at improving governance and regulatory efficiency. This political stability and reform agenda are expected to positively influence the processing of mining licenses and foreign investment approvals.

For Titanium Sands, this creates a more conducive backdrop for navigating the complex regulatory landscape and advancing the Mannar Project toward production readiness.

Looking Ahead

With the IML process gaining momentum and funding plans underway, Titanium Sands is positioning itself to transition from exploration to development. The company’s ability to finalize the TOR, complete the EIA, and secure the IML will be critical milestones in the coming months. Meanwhile, the success of the imminent placement will determine the pace at which the project can progress.