Licence Renewal Delays Test Titanium Sands’ Mannar Project Progress and Funding

Licence Status and Regulatory Context

Titanium Sands Limited (ASX: TSL) has provided a detailed response to ASX queries concerning the status of its exploration licences in Sri Lanka, particularly the Orion Exploration Licences (EL 351, EL 425, EL 423, EL 424) whose validity periods have lapsed. The company confirms that retention licence applications were submitted on time and have received verbal approval from the Geological Survey and Mines Bureau (GSMB), though formal documentation remains pending due to administrative delays.

These delays are attributed to recent political changes in Sri Lanka, including a new presidency and ministerial appointments, which have disrupted government department operations. Despite this, Titanium Sands’ Managing Director Dr James Searle recently met with key officials in Colombo, receiving assurances that the retention licences will be granted once internal processes are resolved.

Peripheral Exploration Licences and Environmental Sensitivities

The company also addressed the status of Peripheral Exploration Licences (EL 180/R/3, EL 182/R/3, EL 371, EL 372), which remain pending renewal. These licences cover environmentally sensitive coastal areas outside the project’s high-grade mineral zone, leading Titanium Sands to deprioritise their renewal while assessing strategic options. The company maintains strong engagement with the GSMB and local stakeholders, emphasizing its commitment to environmentally responsible development.

Progress on Environmental and Mining Approvals

Titanium Sands continues to advance the Environmental Impact Assessment (EIA) process, a critical step toward securing the Industrial Mining Licence (IML) necessary for project development. While the Central Environment Authority (CEA) has yet to issue formal Terms of Reference (TOR) for the EIA, the company has received a comprehensive draft and remains optimistic about completing approvals within 2025. The EIA and IML approvals are closely linked, with the IML expected to follow once the EIA is finalised and recommended by the CEA to the GSMB.

Operational Activities and Expenditure

Despite licence uncertainties, Titanium Sands maintains active operations on Mannar Island, supported by land access agreements and a local office staffed with project management and environmental personnel. Recent activities have focused on community liaison, project planning, environmental studies, and progressing regulatory approvals rather than new exploration. The company reported exploration and evaluation expenditures exceeding $1 million for FY24, with $226,000 spent in the September quarter, reflecting ongoing commitment to project advancement.

Funding and Market Position

With an estimated cash runway of just over one quarter as of September 2024, Titanium Sands is preparing a capital raising placement supported by major shareholders and corporate advisors. The company is also exploring potential debt or hybrid funding options to ensure operational continuity. Titanium Sands asserts that its current level of operations and strategic direction justify the continued quotation of its securities on the ASX, emphasizing compliance with listing rules and ongoing engagement with Sri Lankan authorities.