PERTH (miningweekly.com) – Vanadium developer TNG has signed yet another memorandum of understanding (MoU) over its Mt Peake project, in the Northern Territory, this time with Hyundai Steel.
The ASX-listed developer reported on Monday that it had executed a MoU with the South Korean steel giant, paving the way for a potentially company-making funding, development and construction agreement for the Mt Peake project.
The MoU laid the foundation for TNG to enter into binding agreements with Hyundai Steel for the financing and development of the project, allowing the junior to become a major strategic metals house.
The two companies would negotiate the development of the Mt Peake project and other TNG projects, discuss a potential cornerstone financial investment by Hyundai in TNG, work together on project financing and negotiate long-term offtake agreements for the iron produced at the Mt Peake operation.
TNG MD Paul Burton said the MoU with Hyundai Steel marked a pivotal moment in the company’s history and was a major milestone towards financing and developing the company’s flagship asset.
“This is a breakthrough development, aligning TNG with one of the world’s largest and most successful companies which, in turn, forms part of one of Korea’s dominant industrial conglomerates.”
Burton said that along with TNG’s strategic partner, WOOJIN, the MoU gave TNG direct access to one of the largest and most successful steelmaking and industrial conglomerates in the world.
“Securing the backing of Hyundai Steel, potentially through a cornerstone investment in the company or the Mt Peake project, represents a major step forward for TNG and Mt Peake and gives us access to a powerful global conglomerate with the ability to assist us in funding and completing a definitive feasibility study (DFS) and, ultimately, financing and constructing the project.”
The MoU was the latest in a series of documents signed by TNG, which included strategic cooperation MoU’s and potential long-term offtake arrangements for products produced from the Mt Peake operation.
TNG is currently advancing a staged DFS on the Mt Peake project. The company is aiming to start construction by 2014, with first production and exports slated for 2015.