BEIJING (Asian Metal) 17 Dec 19 – Technology Metals Australia Limited today provided an update in regard to activities in support of the progression of development of the Gabanintha Vanadium Project.
Following the delivery of the very high quality DFS on the development of the Gabanintha Vanadium Project in August 2019 the Company has been in ongoing discussions with offtake partners, equipment vendors and suppliers, strategic partners and project funding parties as well progressing Project environmental and permitting activities.
These activities have delivered offtake MOU’s with two counterparties covering 40% of the proposed annual average production from Gabanintha Project: 2,000tpa V2O5 with CNMC (Ningxia) Orient Group Co., Ltd. (“CNMNC”) and 3,000tpa V2O5 with Shaanxi Fengyuan Vanadium Technology Development Co., Ltd. (“Fengyuan”), and progressed discussions relating to financial support of the Project with the Northern Australia Infrastructure Facility (“NAIF”) to the Due Diligence Stage of the NAIF assessment process.
As previously disclosed the offtake MOU between the Company and CNMNC has been extended to enable the orderly progression through to a binding offtake agreement. Discussions regarding the conversion of the offtake MOU to a binding offtake agreement are now in the latter stages of negotiation and documentation.
Fengyuan are undertaking due diligence on Technology Metals and the Gabanintha Project in conjunction with reviewing an initial draft offtake agreement. The due diligence process is expected to include a site visit, which is likely to take place in the New Year. As such Technology Metals has proposed to maintain the MOU in full effect until the end of March 2020 to enable the orderly completion of the mutual due diligence process.
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