The execution of the fourth and final life-of-mine offtake agreement provides a solid foundation for the financing and development of the Mount Peake Vanadium-Titanium-Iron Project
Australian resource and mineral processing technology company TNG Limited (ASX: TNG) (“TNG” or the “Company”) is pleased to announce that it has executed a binding life-of-mine Offtake and Marketing Agreement with global commodity trader, Gunvor (Singapore), for 40% of the high-purity vanadium pentoxide that is intended to be produced from the Company’s flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory, Australia.
TNG intends to produce approximately 6,000 tonnes per annum of high-purity vanadium pentoxide from its TIVAN® Processing Facility proposed to be located in Darwin (NT) – one of three high-value products to be produced from the fully integrated Mount Peake Project for export to a global customer base.
Under the Agreement, Gunvor will purchase vanadium pentoxide FOB, for global marketing and distribution for a fixed discount.
With the execution of this Agreement, TNG has now executed offtake agreements for all three proposed product streams for the Mount Peake Project:
- 100% of vanadium pentoxide production between Gunvor (40%) and WOOJIN (60%; see ASX announcement dated 7 September 2015);
- 75% and up to 100% of titanium pigment production (see ASX announcement dated 13 May 2019); and
- 100% of iron oxide production (see ASX announcement dated 27 July 2020).
The execution of this Agreement with Gunvor completes the Company’s offtake arrangements, and is a major milestone underpinning the Company’s commercial strategy for Mount Peake.
Commenting on the signing of the Agreement with Gunvor, TNG’s Managing Director & CEO, Mr Paul Burton, said:
“We are delighted to have secured the fourth and final binding life-of-mine offtake agreement for Mount Peake with Gunvor, a major commodity trader with a global footprint.
“The signing of this Agreement, together with the existing offtake agreements with WOOJIN for vanadium pentoxide, DKSH for titanium dioxide pigment and Vimson Group for iron oxide, is a major achievement and creates a robust commercial foundation to advance the Mount Peake Project financing and development strategy.
“We are very pleased that our team was able to complete this Agreement in the current challenging global market environment, further demonstrating the quality and robustness of the Project. We look forward to continuing to build a strong and mutually beneficial long-term relationship with Gunvor.”
Commenting on the signing of the Agreement with TNG, Mr Ross Sabberton, Head of Specialty Ores at Gunvor, said:
“We are pleased to execute this Agreement with TNG as it seeks to progress the development of its Mount Peake Project. We look forward to working with TNG and to marketing the Mount Peake vanadium pentoxide product in the future.”
Source: Company Press Release