TNG secures $10m push for Mount Peake

TNG is continuing to attract interest in its diversified Mount Peake project in the Northern Territory after announcing it will receive a $10 million placement from German investors.

The vanadium-titanium-iron project is located 235 kilometres north of Alice Springs and is anticipated by the company to be one of the ten biggest global vanadium projects once it reaches production. The project possesses a JORC-compliant resource of 160 million tonnes (118 million tonnes measured) at 0.28 per cent vanadium, 5.3 per cent titanium and 23 per cent iron and is anticipated to have a 19-year mine life.

The Western Australia-based company which secured a binding offtake agreement with Swiss firm DKSH for 100 per cent of Mount Peake’s titanium output in May will secure the $10 million from German companies Delphi and Sparta as part of a $15 million capital raising.

Delphi is the parent company of Deutsche Balaton, which in turn owns the majority of Sparta.

The remaining $5 million is to be raised via a shareholder entitlement offer of one new share for every 20 existing shares held. Both the $10 million and $5 million components of the raising is to be delivered at a cost of 9.3 cents per share, a 14.6 per cent discount to TNG’s 10-day volume weighted average price of 10.9 cents as of June 5.

TNG managing director and chief executive officer Paul Burton said that having two major German institutions join its register represented a significant step forward for the company.

“Following last year’s strategic investment by Indian iron ore conglomerate, the Vimson Group, we now have a much stronger strategic and institutional presence on our register which is exactly what is required and we will continue to grow as we move to put in place a multi-pronged project funding package for Mount Peake,” he said.

“Mount Peake is a large-scale and complex project, and institutional support is therefore expected to play a critical part in securing the project equity finance required for future development.”

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