TNG has appointed a German company to arrange a $US600 million ($850 million) debt raising for its Mount Peake project in the Northern Territory.
KfW IPEX-Bank will act as TNG’s senior debt advisor for the development of the vanadium-titanium-iron site and expects to start a mandate for the funds on January 15.
The financier was secured as a project partner following extensive meetings in Europe and Singapore over the past year, according to TNG managing director Paul Burton.
“We now look forward to working closely with KfW IPEX-Bank to progress the full financing package for the Mount Peake project expeditiously, with a view to achieving financial close as soon as possible and getting on with the job of constructing this major new Australian resource project,” said Burton.
The final capital requirements for Mount Peake will be determined in accordance with an ongoing front-end engineering and design (FEED) study, that TNG has recently undertaken with plant supplier and development partner SMS Group.
Mount Peake, which is about 230 kilometres from Alice Springs, has advanced towards development steadily over the past year.
The company updated its initial 2015 feasibility study results in November 2017, revealing a pre-production capital expenditure of $853 million (a $117 million reduction).
It also outlined an unchanged measured and indicated mineral resource of 140 million tonnes grading an average of 0.28 per cent vanadium, 5.4 per cent titanium and 23 per cent iron.