- TNG Limited (TNG) has signed a binding term sheet with global commodity trader, Gunvor
- The binding term sheet is for the potential off-take of the remaining 40 per cent vanadium pentoxide from TNG’s Mount Peake Project
- Together with its ongoing off-take agreements already in place, the company is confident that it will be able to sell the entire suite of high-value products from the project
- TNG’s share price is steady today with shares trading for 9 cents apiece
TNG Limited (TNG) has signed a binding term sheet with global commodity trader, Gunvor (Singapore).
This contract is for the potential off-take of 40 per cent of the high-purity vanadium pentoxide that will be produced by TNG’s flagship Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory.
TNG intends to produce approximately 6000 tonnes per annum (tpa) of vanadium pentoxide from its TIVAN Processing Facility.
The binding term sheet with Gunvor encloses key terms for the sale and purchase off-take of 40 per cent of the vanadium pentoxide to be produced from Mount Peake.
Based on these terms, TNG and Gunvor will work towards the completion of the agreement for the vanadium pentoxide from Mount Peake no more than six months from the date of the binding term sheet.
Together with the existing off-take agreements already in place with Woojin, for vanadium, and DKSH, for titanium, and ongoing advanced discussions for iron oxide off-take, TNG is confident that it will be able to sell the entire diversified suite of high-value products from Mt Peake in global commodity markets.
“We are delighted to have strengthened our long-standing relationship with Gunvor, a global commodity trader with similar values and growth strategies to TNG, by signing this binding term sheet for vanadium pentoxide off-take,” TNG Managing Director and CEO Paul Burton said.
“The signing of this binding term sheet in the current challenging global market environment is another solid achievement by our team and is testament to the quality and robustness of the Mount Peake Project,” he added.
The Mount Peake Project is a world class strategic metals asset located in Australia’s north, 230 kilometres north of Alice Springs.
The project has a JORC measured, indicated and inferred resource totalling 160 million tonnes, grading 0.28 per cent vanadium oxide, 5.3 per cent titanium dioxide, and 23 per cent iron. It also has a 37 year mine life.
TNG’s share price is steady today with shares trading for 9 cents apiece in a $101.2 million market cap.