Date: Sep 25, 2018
TNG Limited (ASX:TNG) has received a AU$10 million investment from Indian mining conglomerate Vimson Group’s subsidiary V. M. Salgaocar & Bro. through a binding subscription agreement.
As TNG moves to develop its Mount Peake vanadium–titanium-iron project in Australia’s Northern Territory, funds raised from the agreement and a share purchase plan (SPP) will help progress final engineering design and permitting prior to the company’s final investment decision.
Vimson’s investment is set to take place in two tranches, the first consisting of AU$9.75 million scheduled for completion on October 5, with the second AU$250,000 tranche set for November after TNG’s annual general meeting. TNG is also discussing a possible 100-percent offtake agreement with Vimson for Mount Peake’s soon-to-be produced iron oreproducts.
The subscription agreement will entail Vimson acquiring TNG fully paid ordinary shares at a price of $0.104, a 20 percent discount to the company’s 15 trading day volume weighted average price (VWAP).
The first tranche will feature 93.7 million shares, while the second will consist of 2.39 million shares. If both tranches are successful, V. M. will subsequently own a 10.36-percent interest in TNG.
Alongside the agreement, TNG is offering an SPP for shareholders to acquire up to AU$15,000 worth of shares at a price of AU$0.11 each, a 20 percent discount to the 5 trading day VWAP.
