TNG has signed a non-binding memorandum of understanding (MoU) with Korea-based WOOJIN IND for its Mount Peake vanadium-titanium-iron project in the Northern Territory.
Under the MoU, both the firms will form a strategic cooperation with respect to off-take, marketing, technology exchange and other mutually beneficial agreements in relation to vanadium, and other products from the Mount Peake project.
Subject to the outcome of due diligence, both companies may enter into binding offtake agreements, as well as marketing and sales agreements.
The agreement will allow TNG to provide samples of its vanadium pentoxide for potential future off-take arrangements, with the potential for technology exchange to add a WOOJIN FeV plant to its TIVANR operation, which may be situated in Malaysia.
TNG, which is currently finalising a definitive feasibility study at the Mount Peake project, said agreements will be structured to allow the company to raise direct or third party financing to underpin its development.
TNG managing director Paul Burton said the MoU represented a major milestone for the company in its quest to secure a significant strategy and commodity partners in financing and developing the Mount Peake project.
"Korea is a major advanced producer of vanadium end-products, providing a strong market for TNG’s anticipated production of high-purity vanadium pentoxide," Burton said.
"This is a further important step in the right direction for us and provides, for the first time, a realistic end-user and experienced partner in the development of our major project."
TNG is planning to begin construction this year, with first production and exports expected in 2015.
Image: TNG managing director Paul Burton with WOOJIN chairman Mr In-Jong Ki (right) and president Young-Nam Ko. Photo: courtesy of TNG.