TNG secures $2m for Mount Peake

Metals explorer TNG has secured a $2 million placement to progress a feasibility study on its planned Mount Peake vanadium project in the Northern Territory.

TNG issued 15.7 million at 13 cents each to an unnamed Hong Kong-based investor, which was a discount to the company’s last closing price of 16.5 cents.

The placement will raise TNG’s cash reserves to $5.7 million to progress the feasibility study on Mount Peake to completion.

“This reflects the progress we have made as we move closer to development of Mount Peake,” managing director Paul Burton said.

“I would expect that the composition of our share register will continue to change as we move closer to development and attract more institutional and strategic investors.”

Last month, TNG signed an offtake agreement for 60 per cent of forecast vanadium from Mount Peak with South Korea-based Woojin.

It also signed an agreement with Adelaide-based contractor McMahon Services and indigenous contractor Intract Australia to provide civil engineering and construction work at the project.

The contractors are undertaking due diligence on the deal.

TNG shares were 8.8 per cent lower to 15.5 cents a share at 10am.