TNG Signs Iron Products Offtake for Mount Peake

TNG Ltd. (ASX:TNG) announced that it’s signed a binding term sheet with global commodities trader Gunvor (Singapore) Pte. Ltd. for life-of-mine offtake of iron products from its Mount Peake vanadium-titanium-iron project. The project is located in Australia’s Northern Territory.
Highlights include:

• Under the agreement a minimum of 60% of all iron products produced from Mount Peake will be purchased underpinning part of the project’s total revenue forecast of $27.3 billion over its initial 15- year mine life (see ASX announcement dated 31 July 2015 – Definitive Feasibility Study).
• TNG’s iron products will be purchased on an FOB basis, marketed and distributed on a global basis for a fixed commission subject to the execution of binding sale and purchase agreement based on these terms at any time but not later than six months prior to the start of production.
• The signing of this agreement, which is the second binding life-of-mine off-take deal to be secured for Mount Peake, marks another key milestone for TNG following completion of the Mount Peake Feasibility Study in July 2015 and opens the door to further potential financing and development.

Paul Burton, managing director of TNG, commented:

This agreement marks another milestone for Mount Peake, building on the landmark off-take agreement signed in September with WOOJIN. It marks the progression of a strong relationship which we have developed over the past year providing further potential commercial foundations for the project.
The signing of this agreement in the current challenging global market environment is a solid achievement by our team and is testament to the quality and robustness of the Mount Peake Project. We look forward to working closely with Gunvor and executing the final binding offtake sale and purchase agreements for the long term.

Click here to read the full TNG Ltd. (ASX:TNG) press release.