TNG Limited has announced that it has signed a Memorandum of Understanding (MOU) with Caterpillar Financial Australia Limited for the provision of finance for Mount Peake.
Mount Peake is a vanadium-titanium-iron project in the Northern Territory.
Under the MOU, the two parties will negotiate project funding and equipment finance for the development of the project which has been estimated to cost around $970 million.
According to the ASX Announcement, TNG will also consider using Caterpillar power and mining equipment for the project.
“Following our first-ever binding life-of-mine off-take agreement, this represents another vote of confidence by a Tier One global development and infrastructure group in our financing and development strategy for the Mount Peake Project,” said TNG’s Managing Director, Mr Paul Burton.
“Under this MOU, Cat Financial will cooperate with TNG to progress the finance strategy for the development of the Mount Peake Project, and specifically consider the provision of project finance and/or equipment finance – an exciting development which will see us working closely with one of the biggest equipment groups in the world to progress project funding.”
Once converted into a binding agreement, the MOU will form part of the diversified project finance consortium being assembled to fund the Mount Peake Project.
“Our strategy for Mount Peake is based on the establishment of a diversified consortium of project development, infrastructure and off-take partners to provide the funding required to develop this project. This marks another key step towards implementing that strategy and we look forward to working with Cat Financial, Caterpillar and its dealerships in the months ahead to convert this MOU into a binding agreement as part of our broader funding and procurement objectives,” added Mr Burton.
“Discussions are progressing on a number of other fronts, both to complete additional binding off-take agreements and to establish suitable funding arrangements for Mount Peake. Our funding and development strategy is on track and shareholders can look forward to a busy period ahead.”
 with Caterpillar Financial Australia Limited for the provision of finance for Mount Peake.){kind=link}