PERTH (miningweekly.com) – ASX-listed TNG will raise A$15-million to advance its Mt Peake vanadium/titanium/iron project, in the Northern Territory.
The company on Tuesday said that it had secured a A$10-million investment from Germany’s DELPHI and Sparta, through a share placement priced at 0.93c a share.
The company will also undertake a 1-for-20 non-renounceable pro-rata entitlement offer to raise a further A$5-million, with the entitlement offer also priced at 0.93c a share.
The offer price represented an 11.4% discount to TNG’s last closing price on the ASX, and a 14.6% discount to its ten-day volume weighted average share price.
The share placement will be made under TNG’s existing placement capacity, and will not require shareholder approval.
MD and CEO Paul Burton said on Tuesday that the company was pleased to have secured the support of two leading German institutions, with a strategic investment that represented a significant vote of confidence in both the Mt Peake project and the company’s financing and development strategy.
“Having two major German institutions join our register is a significant step forward for the company which is consistent with our planned strategy to introduce more institutions to our register, as we plan for the transformation to developer-producer.”
Burton said that following an investment by Indian conglomerate Vimson Group last year, TNG now had a much stronger strategic and institutional presence on its register.
Proceeds from the raising will be used to progress pre-development activities, including design and engineering, final permitting and planning for the Mt Peake project, and to provide general working capital.
Mt Peake is forecast to produce 243 000 t of high purity vanadium pentoxide, 3.5-million tonnes of titanium pigment and 10.6-million tonnes of iron oxide over a 17-year mine life.