Titanium Sands has confirmed it has secured Stage 2 debt funding to advance its Mannar Island project in northwest Sri Lanka that is rich in heavy mineral sands that contain lucrative titanium minerals.
Geomorphologically, Mannar Island is a classic consolidated sand-spit formed by the accumulation of sediments transported and sorted by longshore currents and tidal action along Sri Lanka's northwest coast.
The island is about 32 kilometres long, stretching northwest from the mainland via a causeway. Its width varies from about 1.6km down to 1km in places, contributing to its total area of roughly 130 square kilometres.
Its geomorphology depicts a low-lying, elongated sea-spit composed mainly of sandy deposits, with thin scrubby vegetation adapted to the relatively arid conditions.
The island's formation is a result of coastal processes shaping a dynamic, sediment-rich environment over time.
The company recently met with the Ministry of Finance in Sri Lanka, alongside the Board of Investment, Geological Survey and Mines Bureau and Central Environment Authority to discuss its Industrial Mining Licence (IML) approval process – a critical milestone for Titanium Sands.
Environmental studies - required as part of the Mining Licence application process - are nearing completion, with final reports pending.
The debt funding, facilitated by CPS Capital Group, includes a loan of up to $800,000 from major shareholders, split into two $400,000 tranches (by 13 October 2025 and 13 December 2025), which are repayable by 30 December 2026, with 10% annual interest.
Lenders can convert the loan into shares at $0.005 each, with options attached, subject to shareholder approval.
The funds will finalise environmental studies, progress the IML and cover operating expenses.
Titanium Sands managing director Dr James Searle said “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. 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.”
This part of the process of establishing an operation at Mannar follows a May 2025 licence retention grant, which extended the company’s four key tenements within the high-grade zone and supports ongoing environmental impact assessments.
Mannar hosts an estimated 318 million tonne (Mt) resource at 4.17% total heavy minerals (THM), which includes a higher grade zone containing 82Mt at 6.03% THM, with potential for significant ilmenite production.
THM represents the combined concentration of dense, valuable minerals (such as ilmenite, rutile, and zircon) within the bulk sand deposit, typically measured after separating lighter sands via gravity methods.
These grades are from the company's JORC-compliant resource estimate, and highlight Mannar's potential as a low-overburden, surface-exposed ilmenite-rich asset.
The company benefits from significant Government support for the project, with a number of departments assisting the IML process.
The project is targeting 150,000 tonnes of heavy minerals annually, which could massively boost Sri Lanka’s economy with low-impact mining and local job creation.
Additionally, proposed rehabilitation of dredge-ponds as mining advances will allow ground to be returned to local agricultural use.
The concept is described as a core, progressive component of the project, where post-mining voids are refilled and rehabilitated into sustainable plantations and natural vegetation zones to benefit local landowners.
Recent company updates, including from March 2025, confirm the process is integral to the environmental impact assessment and stakeholder engagement and could see the creation of up to 600 local jobs that may support another 1200 through agriculture, offering hope to Mannar families.
Shareholder approval for the loan terms will be sought at a future meeting.
The funding milestone positions Titanium Sands to secure its Mining Licence, and marks another step towards unlocking Mannar’s potential as a globally significant mineral sands operation.
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By Doug Bright
