Australian strategic metals company TNG has signed a Binding Term Sheet with global commodity trader GUNVOR for potential offtake of 40 per cent of the high-purity vanadium pentoxide produced by the Company’s flagship 100 per cent-owned Mount Peake Vanadium-Titanium-Iron Project.

TNG has said it intended to produce approximately 6000tpa of vanadium pentoxide from its TIVAN Processing Facility, to be located in Darwin in the Northern Territory.

The Binding Term Sheet with Singapore-based GUNVOR will include key terms for the sale and purchase off-take of 40 per cent of the vanadium pentoxide to be produced from Mount Peake, including the purchase of these products on an FOB basis and global distribution for a fixed commission.

TNG Managing Director & CEO Paul Burton said the Company was thrilled to have strengthened its long-standing relationship with GUNVOR.

“We have dealt with the team at GUNVOR over a number of years, including on the possibility of off-take for iron oxide products as disclosed in our release of September this year, and we are delighted to be working closely with them to develop this additional segment of our business,” he said.

“The signing of this Binding Term Sheet in the current challenging global market environment is another solid achievement by our team and is testament to the quality and robustness of the Mount Peake Project.”