On December 13, 2018, TNG Limited (ASX: TNG) has declared that they have named Germany’s kfw IPEX-Bank Gmbh (kfw IPEX-Bank) which is a part of Kfw Group to be their exclusive senior debt advisor and arranger. This was done to conduct a US$600 million debt raise for the evolution and establishment for their (Mount Peake Project) Mount Peake Vanadium-Titanium-Iron Project (100% owned in the Northern Territory).
TNG Limited (ASX: TNG) is a strategic metals company which engages in the exploration and development of mineral properties in Australia. The company explores vanadium, titanium, iron ore deposits — the company listed in 1971.
In export and project financing kfw IPEX-Bank is a solution provider who has an impeccable track record for worldwide complex project financings. The mandate letter is executed between the parties, in that it is mentioned that bank will structure, coordinate, lead, arrange, and manage a syndicate to raise a targeted amount of US$600 million equivalent to A$850 million to support the project financing package. The Mandate will begin on 15 January 2019.
During the ongoing FEED (Mount Peake Front-End Engineering and Design) study and lender’s due diligence then final capital requirements will be precisely determined and optimized. While doing due diligence process, enough levels of eventualities, working capital, debt service reserve amounts and project owner’s costs will be thoroughly assessing and as part of the capital requirements and the entire senior debt financing package will also be structured accordingly.
The SMS Financial Services and TNG have been closely working with the bank closely so that they can upgrade the financial model of the Mount Peake for the CAPEX and OPEX supposition during the FEED study.
Due to this, the parties are aiming to achieve an improved debt/equity structure that is modified to match the vigorous economics of the Mount Peake Project.
As stated by TNG’s MD Mr. Burton, that they are glad to secure a specialized world-class bank partner for their project, the company is glad to have achieved the outcome with the bank, which follows extensive reviews and meetings in Europe, Singapore and at the Company’s head office over the past 12 months.
Financial performance of the company: Revenue was $8,83,000, up 75% compared to $5,04,000 in last year, a loss for the year was $3,329,000 as compared to $4,436,000 in last year, and loss per share is $0.41 as compared to $0.57 in the previous year.
In the last six months, the price of the company has shown a negative return of 16.67 percent over 6 months and 9 percent down over the past one month. TNG Limited shares are trading at $0.110 with a market capitalization of $96.11 million as on 14 December 2018.
Kfw IPEX-Bank’s major responsibility is managing international project and export finance. The bank offers medium and long-term financing by supporting key export industries. They help to develop economic and social infrastructure and to secure the supply of raw materials.
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