Aspiring miner TNG has moved a step closer to its Mount Peake titanium-vanadium-iron project in the Northern Territory, after inking a financing agreement with Caterpillar Financial.
Under the memorandum of understanding, the two parties will negotiate project funding and equipment finance for the development, which has an estimated capital cost of $970 million.
TNG will also consider using Caterpillar power and mining equipment for the project.
The deal follows the company’s first offtake agreement with South Korean company WOOJIN in September.
Under that arrangement, 60 per cent of Mt Peake’s vanadium production will be purchased by Woojin, and it was anticipated the mine would be in production for at least 15 years.
TNG managing director Paul Burton said it was a vote of confidence in the project.
“Our strategy for Mount Peake is based on the establishment of a diversified consortium of project development, infrastructure and off-take partners to provide the funding required to develop (it),” he said.
“Discussions are progressing on a number of other fronts, both to complete additional binding off-take agreements and to establish suitable funding arrangements for Mount Peake.
“Our funding and development strategy is on track and shareholders can look forward to a busy period ahead.”
TNG was down 8 per cent to 17 cents per share.
