A Chinese government-owned mineral exploration and development group has agreed to invest $13.4 million in Perth-based resources company TNG, funds which will underpin test work for TNG’s processing facility at the Mount Peake iron-vanadium project in the Northern Territory.
TNG announced today that the East China Mineral Exploration and Development Bureau (ECE) had taken a 30 per cent stake in the miner, in return for its $13.4 million investment at 11 cents per share.
The agreement is an extension of the previously announced strategic partnership with ECE.
TNG said the funding injection would underpin a key pilot plant test work program for its proprietary hydrometallurgical process for the Mount Peake project.
“Once completed, this transaction will provide significant funding for the company in a very uncertain economic environment – putting TNG in a strong position for growth, creating the foundations to develop our world-scale vanadium project at Mount Peake and enabling us to complete the commercialisation of TNG’s proprietary TIVAN hydrometallurgical process,” managing director Paul Burton said.
TNG is currently conducting a pre-feasibility study on the Mount Peake project.
The PFS will incorporate results of the TIVAN test program, a process where a combination of acid leaching, solvent extraction and chemical stripping is used to extract minerals from ore, rather than energy-intensive roasting.
TNG said the TIVAN process offered lower capital and operating costs than conventional processing routes.
The transaction remains subject to Foreign Investment Review Board and shareholder approval.
At 10:15AM (WST) TNG stocks were steady at 10.5 cents.