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TNG (ASX:TNG) extends debt financing mandate for Mount Peake Project

Mining
ASX:TNG
15 December 2020 07:39 (AEST)

TNG (TNG) has further extended the term of its debt financing mandate with its senior debt advisor, KfW IPEX-Bank GmbH.

In mid-December 2018, the resource and mineral processing company appointed KfW as its exclusive senior debt advisor and arranger. KfW was appointed to lead a debt raise for TNG, worth US$600 million (approximately A$792 million).

The proposed finance package was and is for development and construction of the company’s Mount Peake vanadium-titanium-iron project. The company’s 100 per cent owned project is located in the Northern Territory.

TNG and KfW agreed to the first extension of the mandate term last year, in December of 2019. This most recent extension, the second to occur, extends the mandate term until December 11, 2021. 

The company and KfW agreed to the extension, in light of interruptions related to the COVID-19 pandemic. These interruptions included delays to the progression of the due diligence process for the debt structuring. 

TNG’s Managing Director and CEO, Paul Burton, commented on the extension of the company’s mandate with KfW.

“We are very pleased to confirm KfW IPEX-Bank’s ongoing commitment to the financing of the Mount Peake Project, given the significant challenges and interruptions that have occurred due to the COVID-19 pandemic during 2020,” he said.

“Having the involvement of one of the leading export and project financing banks worldwide as our key financing partner provides us with a secure platform for our finance structure in 2021, and we look forward to continuing a successful working relationship with KfW in the years ahead,” he added.

TNG closed 4.49 per cent higher for 9.3 cents per share.

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