Shares in strategic metals company TNG Limited [ASX:TNG] jumped by 20% to $0.11 a share this morning, following yesterday’s announcement that German bank KfW IPEX-Bank would be stepping in as TNG’s chief financial advisor and arranger.
At time of writing, the current share price stands at $.012.
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TNG’s share price rises, one step closer to vanadium production
The appointment of KfW IPEX-Bank brings TNG a step closer to establishing the first 100% Australian owned vanadium-titanium-iron mine at their Mount Peake project since 2014.
The project, located in the Northern Territory, recently raised $3.87 million after last month’s share purchase plan went live. TNG Managing Director Paul Burton said the result indicated the faith in both TNG and the overall project.
‘This is an excellent result which reflects both the strength of our share register and the quality of our key asset.’
Burton also said that such a milestone, along with the NT government’s approval of Mount Peake as a major project, meant that the community would be well-served going forward with the creation of at least 500 jobs — an aspect that shareholders are clearly supportive of.
‘With these important milestones now complete, and subject to finance, this will now lead to a significant project going into production in the NT with long-term employment opportunities.’
TNG will likely begin construction of the mine in 2019 and has an estimated life expectancy of 17 years.
What does the future hold for TNG?
Vanadium is being touted as the key commodity of 2018, with the price expected to surge during the next few years as it becomes more frequently used in mass electricity storage, construction and military and defence projects.
The majority of the demand for vanadium comes from China, which requires large quantities of vanadium stocks in order to meet new steel rebar regulations.
With new price rises expected in the December quarter, TNG is currently in a fairly enviable position as Australia’s first vanadium-titanium-iron mine in operation since 2014.
Ryan Clarkson Ledward,
Editor, Money Morning
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