Finally in the AFR Mining section
Germany Inc has taken a shine to Perth-based junior TNG Limited's ambitious strategic metals project in the Northern Territory.
TNG announced on Thursday that German banking giant KfW IPEX had agreed to come up with a $US600 million ($829 million) debt funding package for the Mount Peake
vanadium-titanium-iron project.
KFW's appointment as debt adviser and arranger is a major breakthrough for what is touted as one of Australia's biggest new mining projects outside those backed by the iron ore majors.
Critics had always wondered how TNG, with a market capitalisation of less than $100 million, could possibly get to even first base in developing a mine, concentrator and high-tech refinery expected to cost more than $850 million.
It is understood TNG's German engineering partner SMS, enlisted to build the refinery near Darwin to process concentrate from the mine site about 230 kilometres north of Alice Springs, was instrumental in bringing in KfW.
TNG managing director Paul Burton said the company now had a world-class bank partner and was looking to achieve financial close in the first quarter of 2020.
Under the mandate, KfW will also advise TNG on how to maximise cover instruments available from German's export credit agencies.
Indian iron ore mining conglomerate Vimson Group became TNG biggest shareholder in September, grabbing a 10 per cent stake through a $10 million subscription agreement.
TNG has been in contact with the
Northern Australia Infrastructure Facilityabout additional financial backing for the Mount Peake project.
