Tng Secures Binding Terms For Remaining Vanadium Pentoxide Production At Mount Peake Project

BEIJING (Asian Metal) 12 Dec 19 – On December 11, Australian-based TNG Limited announced that is has signed a Binding Term Sheet with the global commodity trader, GUNVOR (Singapore), for potential offtake of 40% of the high-purity vanadium pentoxide that will be produced by the Company’s flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory.

TNG intends to produce approximately 6,000tpa of vanadium pentoxide from its TIVAN Processing Facility, to be located in Darwin (NT) – one of three high-value downstream products to be produced by the fully integrated Mount Peake Project for export to a global customer base.

The Binding Term Sheet with GUNVOR (Singapore) encompasses key terms for the sale and purchase off-take of 40% of the vanadium pentoxide to be produced from Mount Peake, including the purchase of these products on an FOB basis and global distribution for a fixed commission. Based on these terms, TNG and GUNVOR will work towards the completion of the Agreement for the vanadium pentoxide from Mount Peake not later 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 Mount Peake in global commodity markets, underpinning the Project’s forecast revenue and creating a strong foundation for its financing and development.