Titanium Sands Ltd (ASX:TSL) has entered into a conditional sale agreement to acquire a group of companies that hold a substantive 38 square kilometre tenure package that complements its existing extensive tenure at Mannar Island in northwest Sri Lanka.
The company has been progressing the Mannar Island Heavy Mineral Sand Project since recommencing trading on the ASX in December 2018.
In February 2019, the company announced a major increase in its resources to 53.08 million tonnes at 6.67% heavy minerals, including a new high-grade zone of 9.85 million tonnes at 9.06% heavy minerals.
Further resource extension and in filling drilling at Mannar Island is ongoing. This will be further enhanced with the mobilisation of the company’s RC-aircore drilling rig shortly.
High-grade heavy mineral sand intersections on the acquisition tenure
A total of 692 holes have been drilled on the acquisition tenure of which 362 have intersections of between 2% and 27% total heavy mineral (THM).
Notably, the high-grade drilling intersections in the acquisition tenure adjoin and follow the trend of a high-grade resource zone in the company’s existing tenure.
The consideration payable to the vendors for the acquisition consists of:
• Issue of 417,500,000 Titanium Sands Ltd shares to the vendor or nominee;
• Issue of 208,750,000 Titanium Sands Ltd unlisted options exercisable by payment of 5 cents within three years of issue to the vendor or nominee; and
• A 5% net proceeds royalty will be payable to the vendor on minerals sold from the acquisition tenure.
Next steps
Titanium Sands’ investigations to satisfy the due diligence condition are continuing.
Subject to the satisfaction or waiver by the company of the due diligence condition, a notice of meeting seeking shareholder approval of the proposed acquisition will be dispatched to shareholders.