TNG eyes offtake agreement at Mt Peake
PERTH (miningweekly.com) – ASX-listed vanadium developer TNG has secured an offtake partner for its Mt Peake vanadium project, in the Northern Territory, signing a letter of intent (LOI) with Korean ferrovanadium producer Woojin Industrial.
The execution of the LOI followed a March memorandum of understanding (MoU) between TNG and Woojin, and paved the way for binding agreements on both offtake and marketing of the Mt Peake product.
Under the terms of the LOI, the two companies agreed to the purchase and sale of a portion, yet to be determined, of the Mt Peake vanadium, as well as a potential technology exchange and development for added-value products.
Furthermore, Woojin would support TNG in its technology endeavours with its own know-how and with potential sources of funding.
The potential establishment of a marketing and sales platform to jointly distribute Mt Peake vanadium products and by-products as well as other products would also be considered. Subject to commercial terms agreement, the marketing platform could market and distribute 100% of all vanadium products produced by TNG.
TNG MD Paul Burton said on Thursday that the LOI represented a further important milestone for the company towards the development of the Mt Peake project, and securing a vital strategic partnership for future product offtake and marketing.
The LOI followed a recent MoU with Korea’s Posco Engineering and Construction, which provided for a strategic cooperation to complete and deliver the definitive feasibility study (DFS) for the Mt Peake project, and to consider the award of a contract for the engineering, construction and development of the project.
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.
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