Australian strategic metals company TNG Limited has secured a strategic investment from two leading German-based institutions, DELPHI Unternehmensberatung AG (DELPHI), the parent company of Deutsche Balaton AG, and Sparta AG (Sparta), a subsidiary of Deutsche Balaton AG, as part of a landmark AU$15 million capital raising to advance its flagship 100 per cent-owned Mount Peake vanadium – titanium - iron project in the Northern Territory.

The Company has executed binding term sheets with DELPHI and Sparta for a strategic investment in TNG by way of a share placement of AU$10 million (before costs) at an issue price of $0.093 per share.

TNG also proposes to undertake a non-renounceable pro-rata entitlements issue, under which eligible shareholders will have the opportunity to subscribe for one new share for every 20 existing shares held, at the same issue price of $0.093 per new share, to raise approximately AU$5 million before costs. Deutsche Balaton AG intends to fully underwrite the Entitlements Issue, subject to execution of a formal underwriting agreement.

The expected proceeds of the capital raising are intended to be used to further progress pre-development activities including design and engineering, final permitting and planning for the Mount Peake Project, and to provide general working capital, ahead a potential Final Investment Decision for the project.

Importantly, the strategic Placement is consistent with TNG’s objective of introducing major global institutional investors to its share register with the capability to follow their initial investment and support the Company’s multi-pronged funding strategy for Mount Peake.

Under the binding term sheets, the German-based institutions DELPHI and Sparta will subscribe for a total of 107,526,882 new shares at a price of $0.093 per share to raise A$10 million.

The new shares to be issued under the Placement will rank equally with TNG’s existing shares on issue.

TNG’s Managing Director and CEO, Mr Paul Burton, said the Company was very pleased to have secured the support of two leading German institutions with a strategic investment that represents a significant vote of confidence in both the Mount Peake Project and the Company’s financing and development strategy.

“Having two major German institutions join our register is a significant step forward for the Company which is consistent with our planned strategy to introduce more institutions to our register, as we plan for the transformation to developer-producer. Following last year’s strategic investment by Indian Iron ore conglomerate, the Vimson Group, we now have a much stronger strategic and institutional presence on our register - which is exactly what is required and we will continue to grow as we move to put in place a multi-pronged project funding package for Mount Peake.

“Mount Peake is a large-scale and complex project, and institutional support is therefore expected to play a critical part in securing the project equity finance required for future development.

“We are also very pleased to be able to offer all of our eligible shareholders an opportunity to participate in this capital raising through the proposed Entitlements Issue.”


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