Resource and mineral processing technology company TNG is putting the finishing touches on the financing, permitting, value engineering and design for its large Mount Peake vanadium-titanium-iron project in the Northern Territory.
The company has had a busy year, despite the challenges of the COVID-19 pandemic.
TNG had a minor setback in May when the NT Environmental Protection Authority took issue with the proposed Darwin location of the company's TIVAN® processing facility, but it led to the significant decision to progress Mount Peake project as a consolidated and integrated mining and processing operation at the Mount Peake mine site, rather than sending concentrate to Darwin for processing.
Contractor Clough has already completed a revised site layout, paving the way for value engineering and design work, updated cost estimates, final permitting and the completion of financing.
TNG is making progress on all fronts as it aims to make a final investment decision in 2022.
Last month, the company completed a A$12.5 million placement, which boosted the institutional component of its register.
TNG expects institutional investors to form an important part of the project's equity funding.
It is also progressing a process with KPMG Corporate Finance to potentially secure a project development partner.
On the debt financing front, TNG is considering commercial debt, export credit agency covered lined, government concessional funding and off-balance sheet build-own-operate-transfer (BOOT) funding arrangements.
Germany's KfW IPEX-Bank GmbH has been mandated by TNG as its senior debt advisor and arranger to structure, coordinate, lead, arrange and manage a syndicate to raise a targeted amount of up to US$600 million to underpin the project financing package.
The mandate has been extended by 12 months to December 2022 to allow for the changes in the scope of the project.
Given Mount Peake has been awarded federal and territory major project status and is one of Australia's most advanced critical minerals projects, TNG is also engaging with Export Finance Australia over potential access to the federal government's A$2 billion Critical Minerals Loan Facility, as well as the Northern Australia Infrastructure Facility.
TNG is also working with its advisors and sustainability consultants to assist in ensuring that the full range of environmental, social and governance funding options are assessed and prioritised, and that traditional lenders are able to ascribe in their lending terms the full value of the ESG benefits that the Mount Peake project will deliver.
The company already has offtake agreements in place for 100% of planned production, which will comprise three high-value, high-quality products: vanadium pentoxide, titanium dioxide pigment and iron oxide fines.
Mount Peake, 235km north of Alice Springs, is expected to create 1600 jobs during the construction phase and 1000 jobs during operations.
Corporate Connect sees the final investment decision as a "transformational event" for TNG.
The Sydney-based firm has a price target of 32c per share for TNG, well above recent trading levels of 7-8c.