PERTH (miningweekly.com) – ASX-listed TNG has signed a second binding term sheet with Korean ferrovanadium producer Woojin, this time for a technology exchange at the Mount Peake vanadium/titanium/iron project, in the Northern Territory.
The new term sheet would see Woojin transfer its proprietary ferrovanadium technology to TNG, allowing the Australian company to convert vanadium pentoxide onto high-value ferrovanadium. The conversion plant would be established at TNG Tivan refinery site.
MD Paul Burton said on Thursday that Woojin’s capabilities and technology were complementary to the Tivan downstream processing technology, and TNG expected that the combination of the Mount Peake project and the processing capability would have a powerful result.
The new term sheet followed the one inked earlier in March, under which Woojin agreed to purchase a minimum of 60% of the refined vanadium pentoxide produced at Mount Peake, with the offtake negotiations to be conducted at arm’s length at a price based on a predetermined formula.
“Following the binding term sheet for vanadium offtake, we now expect that the final agreements will encompass not only direct offtake for 60% of the vanadium pentoxide production, but also the ability to produce high value ferrovanadium, which may also lead to the capability in future to produce other high value products for global markets,” said Burton.
He noted that the term sheets gave TNG access to Woojin’s marketing network, as well as the ability to access offtake financing, technological input and project development assistance.
“Our companies have many synergies, and we are looking forward to a long, productive and mutually beneficial collaboration,” Burton said.