The proposed transaction between Australian resources company TNG Limited and Jiangsu Eastern China Non-Ferrous Metals Investment Holding Company (ECE) has taken another step forward with ECE receiving approval from the Chinese Government.

The Jiangsu Provincial branch of the National Development and Reform Commission has provided its approval regarding the proposed transaction with ECE under the terms of the letter of intent announced on August 3, 2011.

The transaction with ECE includes a $13.4 million funding injection and strategic alliance to underpin the feasibility and development of TNG’s Mount Peake iron-vanadium-titanium project in Western Australia and commercialization of TNG’s proprietary TIVAN hydrometallurgical process.

In early September TNG received the initial $2 million in funding under the terms of the agreement. The funds are being provided under a loan facility by a private company introduced by ECE.

The facility is designed to provide interim working capital to underpin the ongoing pre-feasibility study and metallurgical test work program on the Mount Peake project.

TNG’s managing director Paul Burton says he is pleased to announce the receipt of this key Chinese Government approval, which marks another important step towards completing the overall transaction. “Other steps include TNG shareholder approval and approval from the Australian Foreign Investment Review Board.”