TNG has been granted the mineral leases that cover its Mount Peake vanadium-titanium-iron project’s mine site and infrastructure.
Bestowed upon the company by Ken Vowles, the Northern Territory’s minister for primary industry and resources, the four leases allow TNG to move forward with financing for Mount Peake’s development.
“TNG’s new mine will create new, direct jobs for Territorians, as well as create flow-on effects for Territory business by providing opportunities for new contracts and new tenders,” Vowles said in a statement.
He added, “[t]he progress in the development of this new mine shows the Territory is a great place to invest, to work, and to do business.”
Prior to receiving these leases, TNG had gathered environmental approvals for the project from both the Northern Territory’s state government and Australia’s federal government earlier this year.
“We are rapidly ticking off the boxes towards the Mount Peake development, with key announcements over the past few months including the signing of a Native Title Agreement, the signing of a binding term sheet for titanium off-take with Swiss commodity trader DKSH and now the formal award of the Mount Peake mineral leases by the NT government,” TNG Managing Director Paul Burton said.
“With these important milestones now complete, we will be squarely focused on moving ahead with project financing negotiations,” he continued.
In September, TNG received a AU$10-million investment from Vimson Group subsidiary V.M. Salgaocar & Bro. through a binding subscription agreement to help progress Mount Peake. In return, Vimson will acquire a 10.36-percent interest in TNG through two tranches of share acquisition.
Going forward, TNG is expecting to begin construction on Mount Peake next year, kicking off a two-year construction period; subject to approvals, the company plans to begin constructing a refinery in 2020.
The mine is set to have a 17-year lifespan, and has the potential to create 500 jobs during construction and 175 to 200 ongoing positions during operation.
TNG shares were down 4.76 percent at the end of trading on the ASX on Wednesday (November 21), closing the day at AU$0.10.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.