TNG has signed a memorandum of understanding (MoU) with Caterpillar Financial Australia in order to secure finance for its wholly owned Mount Peake Vanadium-Titanium-Iron project, located in the Northern Territory of Australia.
Under the MoU, Caterpillar will provide project finance and/or equipment finance for the Mount Peake project.
The MoU follows the completion of the Mount Peake definitive feasibility study (DFS), which was carried out in July.
TNG has agreed to procure CAT mobile mining equipment for the project and award the supply contract to Hastings Deering (Australia), which is Caterpillar's dealer in the Northern Territory.
It also agreed to procure CAT power equipment and award the supply contract to Energy Power Systems Australia, Caterpillar's equipment dealer.
The MoU is expected to form part of the diversified project finance consortium being assembled to fund the Mount Peake Project once it is converted into a binding agreement.
According to TNG, upon receiving all approvals, construction of Mount Peake is expected to start in 2016.
First production from the project is expected in early 2018.
TNG managing director Paul Burton said: "Following our first-ever binding life-of-mine off-take agreement, this represents another vote of confidence by a tier one global development and infrastructure group in our financing and development strategy for the Mount Peake 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 this project."
The Mount Peake project is located 235km north of Alice Springs in Arunta Province, 60km west of the Stuart Highway.
Image: Caterpillar will provide finance for the project development. Photo: courtesy of duron123/FreeDigitalPhotos.net