Titan Mining and U.S. Army Agree to Commercial Framework for Strategic U.S. Graphite Processing Facility
Titan secures a U.S. Army term sheet for downstream graphite processing, de-risking the Kilbourne commercialization project.
Titan Mining Corporation (TI) announced that its subsidiary, Empire State Mines (ESM), has executed a term sheet with the U.S. Department of the Army for an Enhanced Use Lease (EUL) at the Anniston Army Depot in Alabama. The agreement provides for a potential 100-year operating tenure, structured as a 50-year initial term with two 25-year renewal options.
The facility is designed to initially process graphite into Purified Micronized Graphite (PMG), with a subsequent phase dedicated to producing Coated Spherical Purified Graphite (CSPG) for battery applications. Under the terms of the lease, the U.S. Army retains a Right of First Offer for up to 10% of annual production, subject to federal procurement rules. Lease consideration is structured as a fair market value base rent plus participation rent following commercial operations, with a preference for in-kind infrastructure improvements to the depot.
Execution of a definitive agreement remains pending environmental reviews, project financing, and board approval. Meanwhile, the company continues to advance the Kilbourne Graphite Project Feasibility Study and customer qualification programs.
Titan Mining Corporation (TI) has secured a 100-year lease on underutilized military property, a move that eliminates site acquisition and greenfield development risk for its downstream processing plant. The agreement includes a 10% Right of First Offer (ROFO) for the Army, a commercial constraint that serves as a validation signal for the quality of its defense-grade product.
This development aligns with the broader strategic narrative established in June and July 2026, which included an EXIM LOI, Preliminary Economic Assessment (PEA) economics, and AD/CVD duties. The announcement does not introduce new financial metrics or materially change the capital requirement profile.
Titan Mining Corporation owns Empire State Mines, a 100%-owned underground zinc mine in Gouverneur, New York, which produces zinc concentrate with a focus on high-grade zones including Mahler, New Fold, and Mud Pond. The company also holds the Kilbourne Graphite Project, located less than one mile from Empire State Mines. A preliminary economic assessment for Kilbourne indicates a post-tax net present value at a 7% discount rate of $513 million, an internal rate of return of 37%, and a payback period of 2.7 years, with the project targeting 40,000 tonnes per annum of commercial graphite concentrate.
Titan Mining is evaluating germanium as a high-value by-product and has entered into a cooperation agreement with Teck Resources to assess recovery from existing zinc process streams. The company controls a land package of more than 120,000 acres across the Balmat-Edwards district, providing significant exploration upside.