TNG has signed an agreement with a global commodity trader for the potential offtake of vanadium pentoxide produced from the Mount Peake project in the Northern Territory.
Singapore-based Gunvor is in line for purchasing a maximum of 40 per cent of high-purity vanadium pentoxide from Mount Peake.
Gunvor generated $US87 billion ($127.8 billion) in revenue from its logistics solutions last year.
TNG stated that the signing of the agreement would pave the way for further potential financing opportunities.
“We have dealt with the team at Gunvor over a number of years, including on the possibility of offtake for iron oxide products as disclosed in our release of September this year, and we are delighted to be working closely with them to develop this additional segment of our business,” TNG managing director and chief executive Paul Burton said.
“The signing of this binding term sheet in the current challenging global market environment is another solid achievement by our team and is testament to the quality and robustness of the Mount Peake project.”
TNG plans to produce around 6000 tonnes of vanadium pentoxide a year from its TIVAN processing facility in Darwin.
Vanadium pentoxide will be one of the three high-value downstream products that TNG produces from the Mount Peake for export to overseas markets.
TNG has also established existing offtake agreements with South Korean ferro-vanadium producer Woojin and Swiss market expansion specialists DiethelmKellerSiberHegner (DKSH) for vanadium and titanium, respectively.