Entitlement issue for TNG to reach investment decision

VANADIUM-titanium-iron aspirant TNG is aiming to raise A$12.5 million from shareholders in an entitlement issue, with the funds earmarked to progress the Mount Peake project in Northern Territory to development.
Entitlement issue for TNG to reach investment decision Entitlement issue for TNG to reach investment decision Entitlement issue for TNG to reach investment decision Entitlement issue for TNG to reach investment decision Entitlement issue for TNG to reach investment decision

The non-renounceable pro-rata entitlement issue is pricing new shares at 10c each.

Each new share will come with an option exerciseable at 18c before November 2021.

TNG needs an estimated $824 million to develop Mount Peake, with the 37-year, 2 million tonne per annum project said to be capable of generating pre-tax net annual operating cashflow of $359 million.

Last month TNG appointed KPMG as its financial advisor, with German state-owed development bank KfW mandated as the ASX-listed company's exclusive senior debt advisor in November last year.

TNG's major shareholder is a German investment fund.

TNG started the September quarter with $8.6 million.

Shares in TNG closed Friday at 10c, capitalising the company at $112 million.