Australian resource and mineral processing technology company TNG Limited (ASX: TNG) (“TNG” or the “Company”) is pleased to provide an update on the Binding Term Sheet previously signed with the major global commodity trader GUNVOR (Singapore) (“GUNVOR”) for high-purity vanadium pentoxide to be produced from the Company’s
flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project (“Project”) in the Northern Territory, Australia.
The Binding Term Sheet is for a Life-of-Mine Principal Marketing Agreement with GUNVOR (the “Agreement”) for potential off-take of 40% of the vanadium pentoxide production intended to be produced from the Project, to be purchased on an FOB basis and marketed and distributed globally for a fixed commission.
The Agreement was due to be completed by 10 June 2020, being six months from the date of the Binding Term Sheet. Measures taken by both companies in response to the COVID-19 pandemic have impacted the progression of the Agreement, and the parties have mutually agreed to extend the completion date for the Agreement by an additional three months to nine months from the date of the Binding Term Sheet.
The Binding Term Sheet with GUNVOR complements the existing off-take agreement for the balance of 60% of the proposed vanadium pentoxide production executed with Korea’s WOOJIN. TNG intends to produce approximately 6,000tpa of vanadium pentoxide from its TIVAN® Processing Facility, to be located in Darwin in the Northern Territory – one of three high-value downstream products planned to be produced by the fully integrated Mount Peake Project for export to a global customer base.
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