| Australian resource and mineral processing technology company TNG Limited (ASX: TNG) (“TNG” or the“Company”) is pleased to announce that is has taken a further important step towards the financing and development of its 100%-owned Mount Peake Vanadium–Titanium-Iron Project in the Northern Territory after signing a Binding Life-of-Mine Off-take Agreement (“Agreement”) with the leading Indian mining conglomerate VIMSON Group for high-purity iron products.
Under the Agreement, which has been signed with Vimson’s Singapore-based, wholly-owned subsidiary, V. M.Salgaocar & Bro. (Singapore) Pte. Ltd. (“V. M. Salgaocar & Bro.”), TNG will sell and V. M. Salgaocar & Bro. Will purchase up to 100% of the iron product to be produced by Mount Peake on an FOB basis for global marketing and distribution, for a fixed commission. TNG intends to produce approximately 500,000 tonnes per annum of high grade iron ore fines (+64% Fe) from its proposed Darwin-based TIVAN® Processing Facility. The VIMSON Group is a family-owned Indian conglomerate with extensive interests in mineral resources, financial services, real estate development, healthcare and sports. Its head office is in Goa, India with other offices in Mumbai, Delhi, Bengaluru and Singapore. The VIMSON Group has been in the business of mining, processing and transporting iron ore from its fully integrated supply chain in India since 1952 and has been supplying leading Japanese, Korean and Chinese companies including Nippon Steel and POSCO. The Agreement, together with the binding off-take agreements TNG already has in place for up to 60% of its vanadium pentoxide product (see ASX Announcement dated 7 September 2015) and up to 100% of its titanium dioxide pigment product (see ASX Announcement dated 13 May 2019), underpins the Company’s commercial strategy for the Mount Peake Project and creates a strong foundation for the Project’s financing and development. Management Comment Commenting on the signing of the landmark Agreement with V. M. Salgaocar & Bro., TNG’s Managing Director & CEO, Mr Paul Burton, said: “The completion of a binding sales agreement for the third high-value product to be produced at Mount Peake marks another exciting and positive milestone for our shareholders, building on the landmark offtake agreements with the South Korean company WOOJIN for vanadium products, and with the Swiss company DKSH for titanium dioxide pigment. “We are delighted to have signed this agreement with the VIMSON Group, a leader in the Indian resources sector and one of our major shareholders. VIMSON has similar values and growth strategies to TNG, and shares our vision of creating a world-class strategic metals project at Mount Peake that will produce a diversified suite of high-value products for global markets for many decades to come. “The signing of this off-take agreement effectively concludes the original intentions and discussions regarding VIMSON’s initial investment in TNG back in 2018, and we are delighted to welcome them as both an off-take partner and customer as well as a long-term cornerstone shareholder. “We are also very pleased that we were able to execute this agreement in the current challenging global market environment, which is a solid achievement by our team and a testament to the quality and robustness of the Mount Peake Project.” Commenting on the signing of the Binding Off-take Agreement with TNG, Mr Vivek S. Salgaocar, Director of V. M. Salgaocar & Bro., said:“We are excited by the prospect of bringing TNG’s differentiated iron products to market, and will leverage our deep capabilities to ensure the best financial outcome for all involved. This is a further step in Vimson’s path towards growing its global presence in the mineral resources space.” www.ferroalloynet.com |
Thursday, November 21, 2024
