Technology Metals Australia receives indicated support from Danish export credit agency for Murchison Technology Metals Project 

Technology Metals Australia (ASX:TMT) has received a letter of interest (LoI) from EKF Denmark’s Export Credit Agency (EKF) indicating potential financing support of the Murchison Technology Metals Project (MTMP) in Western Australia. 

The company says the LoI marks a ‘significant’ milestone in the progression of its ‘strong’ and ‘positive’ relationship with EKF, with the Danish company potentially financing $150 million to support the development of Technology Metals Australia’s flagship MTMP. 

However, funds are subject to sufficient Danish economic interest in the project, approvals, satisfactory documentation, customary due diligence, and compliance with OECD Arrangement on Officially Supported Export Credits.  

The company adds it is currently in ongoing discussions with Danish multinational engineering company FLSmidth (CPH:FLS) to supply various key equipment items including the roasting kiln section, which is required for further development of the MTMP, as well as other Government and commercial sources of finance and funding support. 

EKF has provided non-binding indicative terms based on expected Danish content from the involvement of FLSmidth as a key equipment supplier to the MTMP.

Speaking on the letter of interest, Technology Metals Australia Managing Director Ian Prentice says: “Our engagement with EKF has been very positive and constructive over a number of years and we are very pleased to have progressed the relationship to receive this letter of interest for financing support for MTMP. This is an exciting and significant milestone alongside our partnership with FLSmidth, which places TMT in a strong position to progress the development of the MTMP. 

“This is an exciting and significant milestone alongside our partnership with FLSmidth, which places TMT in a strong position to progress the development of the MTMP” 

The TMT team is undertaking considerable work in progressing the MTMP funding strategy, including engagement with a range of institutions and also importantly progressing implementation of the company’s holistic ESG action plan in collaboration with WSP Golder, whilst maintaining a clear focus on the timely development of the MTMP and the supply of high purity vanadium to play an important role in the global transition towards net zero.”

Adding on to this, FLSmidth APAC Region President, Tarner Eid says it is looking forward to continuing its relationship with Technology Metals Australia, and is also happy to be working again with EKF.

“FLSmidth has been proud to partner and collaborate with Technology Metals Australia on this project since early 2018 starting with the salt roast leach testwork, through to Front End Engineering and Design (FEED) for the pyro processing technology and major equipment selection reviews for the concentrator and leach circuit. 

“FLSmidth has been proud to partner and collaborate with Technology Metals Australia on this project since early 2018…”

We are also very happy to be working again with EKF on this who has expressed interest in supporting Technology Metals with their financing arrangements for key items from FLSmidth and look forward to continuing to work with Technology Metals on the development of MTMP.”

The company also notes EKF supports Danish businesses and exporters, such as FLSmidth, and has aided the engineering company on projects worldwide for more than 90 years. EKF has also been involved in the financing of a ‘significant’ number of transactions and projects all over the world, generating ‘extensive’ experience within the field of export and project finance.   

In addition, financing support from EKF is backed by the Danish state and can be considered to carry a AAA rating. 

The high-grade MTMP, located 50km south of Meekatharra in Western Australia, consists of the Gabanintha and Yarrabubba deposits located on granted Mining Leases. The MTMP is being developed to be a stable, secure, long term supplier of critical minerals, with targeted average vanadium production of ~12,500 tpa (27.5Mlbs pa) V2O5 over an initial 25 year mine life as well as production of a highly sought after titanium (ilmenite) by-product whilst mining and processing ore from Yarrabubba. 

Technology Metals, alongside its consultants WSP Golder, is implementing a holistic ESG action plan to guide the development and long-term operation of the MTMP to ensure the sustained success of the Project and the engagement with, and support of, all stakeholders.

Images: Technology Metals Australia Ltd
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.