China deal to advance TNG's Mount Peake

Junior explorer TNG has signed off on a partnership with a major Chinese state-owned engineering and development company to finance and develop the Mount Peake iron and vanadium project in the Northern Territory.

The Chinese group has requested anonymity and confidentiality of the terms of the deal until it has evaluated the results of a scoping study released earlier this month.

Subject to a satisfactory review, the parties will then negotiate off-take agreements for the iron and vanadium product; engineering, procurement, construction and management works; and project finance.

TNG chief executive Paul Burton said the memorandum of understanding set the foundations for a strategic alliance that was a significant milestone in the development of Mount Peake.

"We have built a very good relationship for future cooperation with this company over the last 18 months, and we look forward to working towards development of the Mount Peake Project," Mr Burton said

At 11:09AM (WST) TNG shares had gained 3.7 per cent to trade at $0.14.