Titan Mining Corporation and EXIM Bank Collaboration
Titan Mining Corporation is excited to unveil a significant development. The company has entered into a crucial credit agreement with the Export-Import Bank of the United States (EXIM) worth up to US$15.8 million. This financing is directed towards essential capital development, supporting ongoing operations and expansion plans at their Empire State Mine.
Details of the Financing Agreement
This agreement represents a landmark achievement as it constitutes EXIM's first direct mining investment under its Make More in America Initiative (MMIA). The funding is deemed vital in reinforcing the domestic supply chain for critical minerals, showcasing Titan's essential role in enhancing U.S. mineral production.
Key Highlights of the EXIM Facility
- Loan Amount: Up to US$15.8 million available until December 31, 2026.
- Repayment Period: The loan has a seven-year term, with principal repayments starting from December 30, 2027.
- Interest Rate: A fixed competitive interest rate at approximately 4.91% annually, plus an upfront fee leading to an effective rate of around 7%.
- Job Creation: The facility is projected to retain 135 existing jobs while also committing to creating 10 new roles.
- Debt Restructuring: Titan has initiated a restructuring agreement regarding outstanding obligations with Augusta Investments Inc.
- Balance Sheet Strengthening: The financing is set to significantly boost Titan's working capital and reduce debt by year-end 2025.
Management's Perspective
CEO Don Taylor expressed enthusiasm regarding the financing: "This support from EXIM Bank aligns directly with our strategic growth plans at Empire State Mines. It empowers us to invest in critical capital and positions our operations for sustainable success, generating high-quality jobs in the region."
President Rita Adiani emphasized the financing's validation of the company’s strong U.S. assets and its commitment to supplying American manufacturing and bolstering supply chain resilience. This agreement also paves the way for Titan's broader plans in the graphite sector, reinforcing its role in U.S. critical minerals independence.
Additional Financing Initiatives
Moreover, Titan has also initiated a credit agreement with Augusta Investments Inc. for advances made in the previous year, amounting to US$16.5 million. This arrangement facilitates Titan in addressing its obligations with the National Bank of Canada and funds necessary cash deposits pertinent to previously secured contracts.
Terms and Conditions of the Augusta Facility
The facility entails an interest charge of 8% per annum, capitalized until the end of 2025. The repayments are scheduled as follows:
- December 31, 2026: US$7.5 million
- December 31, 2027: US$5.0 million
- December 31, 2028: US$4.6 million (including capitalized interest)
Strategic Focus on Growth and Sustainability
The EXIM Facility is secured against Titan and its subsidiaries, providing a robust financial framework aimed at enhancing long-term production capabilities. In doing so, the agreement highlights Titan’s steadfast commitment to responsible and progressive growth within the mining sector.
About Titan Mining Corporation
Titan Mining is a proud member of the Augusta Group, focusing on producing zinc concentrate from its wholly-owned Empire State Mine located in New York. The company is not only committed to zinc production but is also positioning itself as a major player in natural flake graphite production, aiming to become the first comprehensive producer in the USA in decades. Titan's vision centers on enhancing shareholder value through operational excellence and focused development of critical minerals to secure the domestic supply chain.
Contact Information
For more information, please reach out to:
Investor Relations: Email: info@titanminingcorp.com
Frequently Asked Questions
What is the purpose of Titan Mining's credit agreement?
The credit agreement aims to provide funding for critical capital development at Titan's Empire State Mine, supporting both ongoing operations and expansion.
What is the total amount of financing secured?
Titan Mining has secured up to US$15.8 million from EXIM under the new agreement.
How will the financing impact job creation at Titan Mining?
The financing is expected to retain 135 jobs and create 10 new positions, supporting local employment.
What is Titan's position in the graphite market?
Titan Mining is targeting to become the first comprehensive producer of natural flake graphite in the USA in over 70 years, expanding its operations.
Who can investors contact for more information?
Investors can reach out to Titan's investor relations team at info@titanminingcorp.com for further assistance.
