Vimson Invests AU$10 Million in TNG’s Mount Peake

Vimson Invests AU$10 Million in TNG’s Mount Peake

As TNG continues to progress towards a final investment decision on its Mount Peake asset, Vimson Group has contributed AU$10 million to the company to help the project move forward.

TNG Limited (ASX:TNG) has received a AU$10 million investment from Indian mining conglomerate Vimson Group’s subsidiary V. M. Salgaocar & Bro. through a binding subscription agreement.

As TNG moves to develop its Mount Peake vanadium-titanium-iron project in Australia’s Northern Territory, funds raised from the agreement and a share purchase plan (SPP) will help progress final engineering design and permitting prior to the company’s final investment decision.

Vimson’s investment is set to take place in two tranches, the first consisting of AU$9.75 million scheduled for completion on October 5, with the second AU$250,000 tranche set for November after TNG’s annual general meeting. TNG is also discussing a possible 100-percent offtake agreement with Vimson for Mount Peake’s soon-to-be produced iron ore products.

The subscription agreement will entail Vimson acquiring TNG fully paid ordinary shares at a price of $0.104, a 20 percent discount to the company’s 15 trading day volume weighted average price (VWAP).

The first tranche will feature 93.7 million shares, while the second will consist of 2.39 million shares. If both tranches are successful, V. M. will subsequently own a 10.36-percent interest in TNG.

Alongside the agreement, TNG is offering an SPP for shareholders to acquire up to AU$15,000 worth of shares at a price of AU$0.11 each, a 20 percent discount to the 5 trading day VWAP.

In a statement, TNG managing director Paul Burton commented on the investment from Vimson.

“We are very pleased to have secured a strategic investment from the Vimson Group, a leader in the Indian resources sector with similar values and growth strategies to TNG, and we welcome them to our register,” he said.

“With a project of the scale and complexity of Mount Peake, it has always been part of the financing strategy to create an opportunity for a strategic investment of this nature that may lead to an offtake and could assist with securing part of the project equity finance in the future.”

Mount Peake, TNG’s wholly-owned flagship project, is set to have a 17-year mine life and holds a resource estimate of 160 million tonnes (Mt) at 0.28 percent vanadium, 5.3 percent titanium and 23 percent iron, 118Mt of which is a measured resource. Its total production is set to entail 3.5Mt of titanium pigment, 243,000 tonnes of vanadium and 10.6Mt iron(III) oxide.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

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