Indian conglomerate Vimson Group inked a binding term sheet for a life-of-mine off-take deal covering high-purity iron ore from TNG Ltd.'s preproduction-stage Mount Peake vanadium-titanium-iron project in Northern Territory, Australia.
Under the term sheet, Vimson's Singapore-based subsidiary V.M. Salgaocar & Bro. Pte. Ltd. will purchase Mount Peake's iron ore on a free-on-board basis for global marketing and distribution, for a fixed commission. The Vimson Group is a TNG shareholder with a 9.84% stake.
TNG said Dec. 12 that it intends to produce approximately 500,000 tonnes per annum of iron oxide fines from its Darwin-based TIVAN processing facility, as well as high-purity vanadium pentoxide and titanium pigment products.
The parties will work toward completing a final agreement within six months of the date of the binding term sheet, with TNG saying it will complete the portfolio of binding term sheets and off-take contracts for Mount Peake.