TNG banks upfront $2M payment

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THE BOURSE WHISPERER: Australian resources company TNG Limited has received an initial funding injection of $2 million under the terms of a binding Letter of Intent (LOI) with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Company (ECE).
 
The $2 million injection has been paid to TNG through a loan facility by a private company introduced by ECE.

The facility is designed to provide the company with interim working capital prior to the completion of the main transaction.

“The receipt of this interim funding of $2 million provides confidence in the intention of both parties under the LOI, and ensures that we can continue to maintain our pace of exploration, pre-feasibility and development work at Mount Peake while we complete the approvals and documentation required to conclude the broader transaction and Strategic Alliance,” TNG Limited managing director said in the company’s announcement to the Australian Securities Exchange.

“We are looking forward to concluding this transaction, which will lay the foundations for further growth of the company and the development of the Mount Peake project as the cornerstone of a substantial ferrous metals business.”

The due diligence process for the LOI is proceeding on schedule with ECE’s due diligence clearing the way for the process of obtaining other key approvals.

These include TNG shareholder approval and other regulatory approvals including the Australian Foreign Investment Review Board approval and that of the Jiangsu Provincial People’s Government.
 
TNG said the loan facility marked a significant step towards the completion of the broader transaction with ECE, which includes a $13.4 million funding injection and Strategic Alliance to underpin the feasibility and development of the Mount Peake iron-vanadium-titanium project in the Northern Territory.

It will also go towards commercialisation of TNG’s proprietary TIVAN hydrometallurgical process.

ECE is a major Chinese mineral exploration, development and mining group based in Nanjing.

It has over 4,000 employees and is one of the few organisations authorised by the Chinese Government to carry out geological exploration and scientific research in major State classified projects.