Indian conglomerate Vimson Group has invested $10 million into Western Australia-based mining company TNG.
The funds will primarily be used for continued development of TNG’s Mount Peake vanadium-titanium-iron project in the Northern Territory, which is around 230km north of Alice Springs.
The project went through a definitive feasibility study (DFS) in 2015 and hosts JORC compliant resource estimate of 160Mt (118Mt) at 0.28 per cent vanadium, 5.3 per cent titanium and 23 per cent iron. It is projected to have a 17-year mine life and a Stage 1 throughput of 3Mt/y, which is to expand to 6Mt/y in Stage 2 following a period of four years.
Vimson’s investment will take place in two tranches: one for $9.75 million on October 5 and another of $250,000 following TNG’s annual general meeting in November.
TNG is also holding a subscription agreement to allow shareholders to acquire up to $15,000 in shares at 10.9 cents per share, a 20 per cent discount to the company’s five-day volume weighted average price (VWAP).
Vimson entered into the agreement to invest in TNG through Singapore-based subsidiary V. M. Salgaocar & Bro. In addition to the $10 million, TNG is also in discussion with Vimson for the offtake of 100 per cent of its iron ore production from Mount Peake.
According to Vivek Salgaocar of V.M.Salgaocar & Bro, the company had been impressed with the senior management and leadership of TNG over the past few months.
“The opportunity fits in with out plans for strategic global investments in mineral resources, and we look forward to a mutually beneficial, long-term relationship” he said.