TNG Signs Second Agreement with Woojin for Mount Peake

The first agreement was made on March 10 and pertained to the sale of up to 60 percent of the vanadium from TNG’s flagship Mount Peake vanadium-titanium-iron project.

This new deal will see Woojin transfer its proprietary ferrovanadium technology to TNG, allowing the Australian company to convert vanadium pentoxide into high-value ferrovanadium at a conversion plant that will be established at TNG’s TIVAN refinery site.

The technology from Woojin will complement the downstream processing technology already in place at TIVAN, and according to Paul Burton, TNG’s managing director, the combination will have powerful results.

“Following the binding term sheet for vanadium offtake, we now expect that the final agreements will encompass not only direct offtake for 60% of the vanadium pentoxide production, but also the ability to produce high value ferrovanadium, which may also lead to the capability in future to produce other high value products for global markets,” Burton said in a press release.

Burton also noted that the deal will give TNG access to Woojin’s marketing network, giving it the ability to access offtake financing, technological input and project development assistance.

TNG’s Mount Peake project is forecast to produce 11,000 tonnes per year of vanadium pentoxide over a minimum 20-year mine life. The company also recently started water-bore drilling at Mount Peake, noting that its purpose is to show that there is water available to use at the proposed mine site. That work is a requirement for a feasibility study that is expected to be complete midway through the year.

At end of day Friday, TNG’s share price was up 4.88 percent, at $0.215. It is up 141.57 percent year-to-date.

Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.

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