TNG (TNG) has received a letter of support from Export Finance Australia (EFA) for a potential $300 million in debt funding to develop the Mount Peake project in the NT.
The company said the letter of support was a cornerstone component of the finance package for the future construction of the vanadium-titanium-iron project and came as part of the Australian Government’s $2 billion Critical Minerals Facility.
TNG’s Managing Director and CEO, Paul Burton, said the letter laid a “solid foundation” for the company to secure the debt financing package to develop its Mount Peake project.
“Mount Peake is a significant critical minerals project for Australia as it will contribute to the diversification of global critical minerals supply, specifically of vanadium and titanium, and will bring more value from the critical minerals value chain to the country,” Mr Burton said.
According to TNG, the Mount Peake Project is one of the largest undeveloped vanadium-titanium-iron projects in the world. It has been awarded Major Project Status by both the Australian and the NT governments.
What’s more, the project has been identified as one of 15 Australian critical minerals projects by the Federal government’s Critical Minerals Processing: National Manufacturing Priority Road Map.
Today’s letter of support for the funding under the Critical Minerals Facility, however, said the receipt of the funding still hinged on TNG making satisfactory progress on a number of commercial matters.
These include TNG raising equity and funding from other lenders, compliance with EFA’s environmental and social risk policies, and securing offtake agreements for the product produced from the Mount Peake project.
TNG said it would now further engage with EFA to progress the customary due diligence process for obtaining finance.
Shares in TNG last traded at 5.1 cents on July 7.
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