Mineral processing technology company Tivan Resources has signed a A$20m ($13.7m) deal to acquire the Speewah vanadium/titanium/iron project located 100km south of the port town of Wyndham, Kimberley, Western Australia, from King River Resources.
Under a binding term sheet, Tivan will acquire all the issued capital of Speewah Mining, which owns the Speewah project. It will also acquire all mining tenements, mining information and all related intellectual property.
In exchange, Tivan will issue A$10m ($6.87m) of new Tivan shares at a deemed price of 10c each.
Tivan will also make a three-staged cash payment of A$10m ($6.87m), including an initial A$2.5m payment upon completion of the transaction.
The Speewah Project is said to hold Australia’s largest reported vanadium in titanomagnetite resource. It is estimated to contain JORC-compliant measured, indicated and inferred resources of 4.7 billion tonnes at 0.30% V₂O₅, 14.7% Fe and 3.3% TiO₂.
Covering an area of 226km², the project comprises seven tenements in Western Australia, including E80/2863-I, E80/3657-I, L80/43, L80/47, M80/267, M80/268 and M80/269.
Upon completion of the acquisition, Tivan will have two large-scale vanadium in titanomagnetite deposits in Australia. These include the Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory and Speewah.
The deal is expected to provide Tivan with a ‘crucial impetus’ for feeding its proposed centralised processing facility in Darwin.
Tivan executive chairperson Grant Wilson said: “Speewah is a game-changer for Tivan, for northern Australia and for the critical minerals sector globally.
“My central expectation is that the acquisition will put Tivan and Darwin at the forefront of forward-facing critical minerals on a global basis in the years and decades ahead.
“The prior involvement of SMS Group and APM Consultants, both long-standing service providers of Tivan, will assist materially in expediting project feasibility studies.”
The transaction is subject to conditions, including an independent geological assessment of the resource estimate at the Speewah project, and approval from the King River shareholders.