Titanium Sands Ltd (ASX:TSL) will call an extraordinary general meeting (EGM) in the coming weeks over its proposed acquisition of a company with a 38-square-kilometre tenement package in the Mannar district of Sri Lanka after ASX Ltd (ASX:ASX) and ASIC issue approvals related to the vote meeting.
The Western Australian company, which is also preparing for an AGM in the next month, expects the EGM approval in the coming weeks.
Once the approvals are received, Perth-based Titanium Sands plans to announce the EGM date and call the meeting.
The growth of the company over the last 12 months in terms of mineral resource increase from 10.3 million tonnes to 85 million tonnes, is outstanding.
Titanium Sands managing director Dr James Searle
A tonnage increase
Titanium Sands’ proposed acquisition would increase the size of its flagship Mannar Heavy Mineral Sands Project by giving it 32 million tonnes more resources, grading 7.45 heavy mineral sands.
The resource tonnage increase, from 52 million tonnes, would mean the company could claim the milestone achievement of having increased its resource tonnage by 74.7 million tonnes, or 825%, in 12 months.
Titanium Sands hopes to buy up the new ground by giving the licence holder seller 133,333,333 Class C Performance Shares in exchange for its company and converting these into shares about the time of the upcoming November 26, 2019 AGM.
An advisory appointment
To advance its strategy, proposed buyer Titanium Sands has appointed supportive broker CPS Capital Group as its capital advisor.
CPS helped Titanium Sands with its prospectus raising last year and has continued to be supportive of the company in the past year, since TSL's reinstatement to quotation on the Australian Securities Exchange in December 2018.
The capital advisory appointment will run for an initial 12-month term, as the company provides fresh news flow as it focuses on growth and updates its resource estimates.
A “great step forward”
Titanium Sands managing director Dr James Searle said on Friday, “It is a great step forward for the company to complete the due diligence for the proposed acquisition of the further Mannar tenure and to appoint CPS Capital as TSL’s corporate advisor.
“Assuming the company obtains the various approvals of the company’s shareholders necessary to complete the proposed acquisition of the further Mannar tenure, and completion of that acquisition occurs, the growth of the company over the last 12 months in terms of mineral resource increase from 10.3 million tonnes to 85 million tonnes, is outstanding and indicative of what the company aimed to achieve from day one.
“Now with the additional formal support and direction of CPS, TSL hopes to continue to deliver continuing good news by way of both further resource upgrades and company growth in the coming 12 months.”
Next steps to deliver outcomes
Titanium Sands has been completing a reverse circulation (RC) aircore drilling campaign at its Mannar project.
Drillers have targeted shallow areas under the water table to infill and extend known mineralisation.
Last week the company tipped a resource update for a high-grade resource was coming in the December quarter.
Titanium Sands reported on Friday, “The company also expects to announce a resource update for the shallow surface-exposed high-grade resource situated above the water table in about 4 to 6 weeks.”
Titanium Sands will hold its annual general meeting at Perth at 2016 St Georges Terrace at 10 am Western Standard Time (1pm EST) on November 26, 2019.