Titan Mining soars as EXIM weighs $120M graphite funding

[Redator]

Titan Mining (TSX: TI) says the US Export-Import Bank (EXIM) is weighing a potential funding of up to $120 million that would pave its way to becoming the first US-based fully integrated graphite producer.

Titan, one of the largest zinc producers in the US, also aims to become a key supplier of graphite for battery, defense and industrial applications by processing natural flake graphite produced at the Kilbourne deposit in upstate New York.

A central part of the Kilbourne project is a proposed 40,000-tonne-per-year commercial processing facility, to be built next to the company’s Empire State Mines zinc complex. At full capacity, the facility could supply about half of the US natural graphite market, the company has said.

The EXIM funding, if approved, will cover a “substantial portion” of the capital required to construct its Kilbourne project in St. Lawrence County, Titan stated in a press release Tuesday.

Under the terms indicated by the bank’s letter of interest, the $120 million loan will have a repayment tenor of approximately 12 years, including an interest-only period, and will reference the Commercial Interest Reference Rate (CIRR), currently around 5%.

“This letter of interest marks a major milestone toward securing long-term, competitive-rate financing for project development as we continue to prioritize capital efficiency and disciplined balance sheet management supporting any construction decision at the Kilbourne project,” stated Rita Adiani, Titan’s CEO.

Titan Mining’s shares surged over 9% to as high as C$2.42 apiece, its best since listing on the TSX in late 2017. The Vancouver-based miner has a market capitalization of C$328.3 million ($235.4 million).

EXIM commitment

The EXIM letter, part of the “Make More in America” initiative, further extends the bank’s funding commitment to Titan. In June, the export credit agency approved a $15.8 million loan to support the expansion of Titan’s zinc operations as well as the development of its graphite project.

According to a resource estimate in December, the Kilbourne project site holds 22.4 million tonnes of inferred material grading 2.91% graphitic carbon (Cg) for 653,000 tonnes of contained graphite. Processing of the graphite concentrates will initially occur at 20,000 tonnes per annum, before the targeted capacity of 40,000 tonnes is achieved in 2027.

Last month, Titan kicked off commissioning of its graphite processing facility. With all key operating permits secured, the company aims for its first processed natural graphite in the fourth quarter this year, with sales qualification to follow in early 2026.