Technology Metals Australia Receives Danish Letter of Interest
THE BOURSE WHISPERER: Technology Metals Australia reported the delivery of a Letter of Interest (LoI) from EKF Denmark’s Export Credit Agency (EKF) regarding potential financing support for the company’s Murchison Technology Metals Project (MTMP).
The high-grade MTMP is located outside Meekatharra in Western Australia and consists of the Gabanintha and Yarrabubba deposits located on granted Mining Leases.
Technology Metals Australia is developing the MTMP to be a long-term supplier of critical minerals targeting average vanadium production of approx. 12,500 tonnes per annum vanadium pentoxide (V2O5) over an initial 25 year mine life as well as production of a titanium (ilmenite) by-product from mining and processing ore from Yarrabubba.
A recent Mineral Resource Estimate (MRE) upgrade delivered a global MRE for the MTMP of 153.7 million tonnes at 0.8 per cent V2O5, inclusive of a Measured and Indicated MRE of 63.2 million tonnes at 0.9 per cent V2O5, which the company expects to support an increase on the current 25 year mine life.
The EKF LoI contemplates financing support of around $150 million subject to, among others, sufficient Danish economic interest in the MTMP, approvals, satisfactory documentation, and customary due diligence.
Financing support from EKF is backed by the Danish state and as such can be considered to carry a AAA rating.
EKF has been involved in the financing of projects all over the world and has extensive and positive experience working with FLSmidth, a key equipment supplier for the MTMP.
“This is, an exciting and significant milestone alongside our partnership with FLSmidth, which places TMT in a strong position to progress the development of the MTMP,” Technology Metals Australia managing director Ian Prentice said.
“The TMT team is undertaking considerable work in progressing the MTMP funding strategy, including engagement with a range of institutions and also importantly progressing implementation of the company’s holistic ESG action plan in collaboration with WSP Golder, whilst maintaining a clear focus on the timely development of the MTMP and the supply of high purity vanadium pentoxide to play an important role in the global transition towards net zero.”
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