Since delivering the DFS in August 2019, the company has been in ongoing discussions with offtake partners, equipment vendors/suppliers, strategic partners and financiers.
It also continues to advance environmental and permitting activities.
Converting offtake to binding agreement
To date, TMT has delivered two MoUs with two separate parties covering 40% of the proposed annual project production.
This comprises 2,000 tonnes per annum (tpa) vanadium pentoxide to CNMC (Ningxia) Orient Group and 3,000tpa vanadium pentoxide to Shaanxi Fengyuan.
Discussions regarding the conversion of CNMC’s MoU to a binding offtake agreement are now in the latter stages of negotiation and documentation, with investors to be updated as this matter is progressed.
Shaanxi Fengyuan continue to conduct due diligence with a site visit likely to take place in early 2020.
Project is low-cost and long-life
TMT’s managing director Ian Prentice said: “We are very pleased with progress made in advancing the development of GVP following the delivery of the very high-quality DFS in August 2019, in what has been a challenging vanadium market.
“We believe that the tightness in the vanadium supply-demand balance is starting to have an impact, which should see a recovery in the V2O5 price leading in to 2020.
“This timing is very complimentary for the development of the globally significant large scale, low cost, long life GVP and as we conclude negotiations towards binding offtake agreements.”