Indians to plough $10m into TNG
Date: Sep 26, 2018
ASX-listed vanadium player, TNG Ltd, appears to have locked down a solid looking, Indian, private cornerstone investor that will assist it to catapult the company’s Northern Territory based vanadium project into production.
In a market update on Monday, TNG said it had executed a binding subscription agreement with Goa-based Vimson Group, through its Singapore-based subsidiary VM Salgaocar & Bro, for a $10m strategic investment into TNG.
Vimson is a private, family-owned Indian mining conglomerate with extensive interests across several sectors including resources. TNG will use the money to advance its Mount Peake vanadium-titanium-iron project in the Northern Territory.
Mount Peake, according to the ASX junior, has an ore reserve of 41.1 million tonnes grading 0.42 per cent vanadium pentoxide, 7.99 per cent titanium dioxide and 28 per cent iron.
It is forecast to produce 243,000 tonnes of high-purity V2O5, 3.5 million tonnes of titanium pigment and 10.6 million tonnes of high-grade iron oxide during its initial 17-year mine life according to economic studies undertaken for TNG.
Earlier this year, TNG received federal environmental approval for the project that is located 230km northwest of Alice Springs and a number of indigenous related approvals have also now been locked in.
Commenting on the strategic investment, TNG Managing Director Paul Burton said: “We’re 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.”
