- TNG (TNG) has signed a binding term sheet with Vimson Group, an Indian-based company operating in the mining sector
- The term sheet was signed by Vinson’s subsidiary, V.M. Salgaocar & Bro
- TNG’s agreement will see the company sell 100 per cent of its iron ore products from the Mount Peake Project to the Vimson Group
- The signing supports the value and commercialisation strategy of Mount Peake – marking another key step in the project’s development
- Despite the good news, TNG is down 2.22 per cent today, with shares trading for 8.8 cents each
TNG (TNG) has signed a binding term sheet with Vimson Group for the off-take of high purity iron ore from TNG’s Mount Peak Vanadium-Titanium-Iron Project.
Under the agreement, TNG will sell 100 per cent of the iron products to be produced at Mount Peake for a fixed commission.
“We are delighted to have signed a Binding Term Sheet with the Vimson Group to purchase our iron oxide products on a life-of-mine basis,” TNG Managing Director and CEO Paul Burton said.
The company plans to produce roughly 500,000 tonnes per annum of iron oxide fines from its planned TIVAN Processing Facility in Darwin, as well as high-purity vanadium pentoxide and titanium pigment products.
The binding term sheet was signed through Vimson Group’s Singapore-based subsidiary, V.M. Salgaocar & Bro.
“Vimson is a leader in the Indian resources sector with similar values and growth strategies to TNG, and this agreement further cements the strong relationship we have developed with them since their original investment in the company in 2018,” Paul added.
Vimson has a 9.84 stake in TNG which mirrors its interest in mineral resources. The Goa-based company has been operating in the mining, processing and transporting of iron ore business since 1952.
“We are excited by the prospect of bringing TNG’s differentiated iron products to market, and will leverage our deep capabilities to ensure the best financial outcome for all involved,” V. M. Salgaocar & Bro Director Vivek S. Salgaocar said.
Additionally, this agreement will pave the way further for Vimson’s path towards growing its global presence in the mineral resources industry.
Despite the good news, TNG is down 2.22 per cent today, with shares trading for 8.8 cents each at 12:15 pm AEDT.