TNG Ltd. (ASX:TNG) announced that it signed a three-way memorandum of understanding (MOU) with Hyundai Steel Co. Ltd. (KRX:004020) and Korea’s Woojin Ind. Co. Ltd. on July 10, 2014.

The MOU, which is non-binding, “pav[es] the way for a potentially company-making funding, development and construction arrangement” for TNG’s Australia-based Mount Peake vanadium project.

MOU highlights include:

  • Hyundai Steel Co., Ltd, a leading Korean-based global steel company and member of the Hyundai-Kia Automotive Group, and ferro-vanadium giant WOOJIN sign non-binding development MoU with TNG.
  • Hyundai Steel is one of the world’s largest electric arc furnace (EAF) steel manufacturers, with three new blast furnaces, and forms part of a global industrial conglomerate.
  • The MoU encompasses strategic co-operation to deliver a cornerstone investment in TNG, potential off-take for the iron products from TNG’s Mount Peake project and includes consideration of TNG’s other resource projects.
  • Hyundai Steel will also assist TNG with procuring project finance to underpin development of its world-class Mount Peake Vanadium Project in the Northern Territory.
  • Discussions to progress this MoU to binding agreements are already underway. Completion will represent a company-making development for TNG, securing the Company’s future as a major strategic metals house.

Click here to read the full TNG Ltd. (ASX:TNG) press release.