Shares of Titan Mining Corporation (NYSE-A:TII, TSX:TI) surged 34% on Friday after the company disclosed that its subsidiary, Empire State Mines, has been conditionally selected by the U.S. Army for Enhanced Use Lease opportunities at two defense installations.
Under the announced plan, Empire State Mines will establish the Kilbourne Graphite Purification Plant - described as the first commercial graphite purification facility to be located on U.S. military property. The primary site identified is Pine Bluff Arsenal in Arkansas, where approximately 245 acres have been allocated. A sequenced development at Anniston Army Depot in Alabama is also part of the selection, with roughly 97 acres designated for the project.
The awards were granted through U.S. Army RFP No. DACA27-1-26-204 and the Army's Strategic Capital Initiatives program. The company said the selection represents the first use of Enhanced Use Lease authority for a critical mineral processing facility.
Empire State Mines will be responsible for designing, financing, building and operating the Kilbourne Graphite Purification Plant to produce purified graphite intended for defense, energy and industrial uses. Lease arrangements may extend up to 50 years under 10 U.S.C. A7 2667 Enhanced Use Lease authority, while the U.S. Army will retain title to the land. All development, construction and operating costs will be borne by Empire State Mines.
Construction is targeted to begin in the second half of 2027, according to the announcement. Business terms agreement negotiations with the U.S. Army are currently underway.
The announcement highlighted the broader supply dynamics for graphite. The United States is 100% reliant on imports for natural flake graphite, and the company noted that China controls more than 90% of global battery-grade graphite processing capacity. Titan Mining operates the Empire State Mine in New York and is identified as the only end-to-end producer of natural flake graphite in the U.S.
Context and implications
The Army selections position Empire State Mines to develop domestic processing capacity on federal land using Enhanced Use Lease authority - a mechanism that allows non-federal entities to develop and operate facilities on military installations while the government retains land title. The Kilbourne plant is intended to serve defense, energy and industrial markets.
Current status
- Selection notices are conditional and formal business terms remain under negotiation.
- Construction start is targeted for the second half of 2027, subject to final agreements and permitting.
- Empire State Mines will assume all development, construction and operating costs under the lease arrangement.
Market reaction
The conditional selections triggered a strong positive response from investors, reflected in the 34% jump in Titan Mining's stock on the announcement day.