SYDENY: 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, a subsidiary of Deutsche Balaton AG,as part of a landmark A$15 million capital raising to advance its flagship 100%-owned Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory. [the_ad id=”31605″]TNG has executed binding term sheets with DELPHI and Sparta for a strategic investment in TNG by way of a share placement of A$10million (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 A$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.