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TNG signs Swiss Group for 100 per cent of titanium dioxide pigment production

Industrial
ASX:TNG
13 May 2019 02:38 (AEST)

Image Sourced TNG Limited

TNG Limited has signed a Binding Life-of-Mine Off-take and Marketing Agreement with Market Expansion Services provider DKSH. The Agreement is for TNG to purchase, up to 100 per cent of the titanium dioxide pigment produced at Mount Peake Vanadium-Titanium-Iron Project. The Mount Peake Project is TNG’s wholly-owned project in the Northern Territory.

TNG will produce its titanium dioxide pigment products using the new, innovative TIVAN hydrometallurgical process. TNG realised the TIVAN titanium feedstock’s, low iron content is a significant advantage over regular titanium dioxide feedstocks. Low-iron feedstock can minimise negative environmental impact compared to standard processes.

“DKSH is a great fit for us given the technological breakthrough we achieved last year with our ability to produce titanium dioxide pigments. We are really looking forward to working closely with them as we complete the funding package for Mount Peake and move the Project towards development and construction,” TNG’s Managing Director & CEO, Mr Paul Burton, said.

This recent breakthrough can further improve the Company’s titanium dioxide product quality, price and economics of Mount Peake whilst reducing environmental impact.

Along with the DKSH Agreement, TNG also has a binding life-of-mine off-take agreement with WOOJIN Metals for minimum of 60 per cent vanadium output, and a bind Term Sheet for life-of-mine off-take agreement with Gunvor for iron products.

Burton commented further on the other off-take agreements: “We are also working on signing final binding off-take agreements in the coming months for both our vanadium pentoxide and iron products. Together with the Front End Engineering and Design work currently underway, these agreements will effectively underwrite our funding strategy for Mount Peake.”

The finalisation of a binding off-take agreement for titanium dioxide production means that TNG will have binding sales contracts in place for titanium dioxide, vanadium and iron which will support its funding and commercialisation strategy for the Mount Peake Project.

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