Tivan Limited (ASX:TVN) Enters Joint Venture Agreement with Sumitomo
Joint Venture Agreement
Tivan Limited (ASX: TVN) has signed a Memorandum of Understanding (MoU) with Sumitomo Corporation for the development of the Speewah Fluorite Project. The MoU establishes the framework for key commercial and corporate terms necessary for the planned joint venture, which is set to replace the previous Strategic Alliance Agreement.
Investment and Funding Structure
The MoU outlines an aggregate equity investment of up to A$60 million through a Sumitomo Special Purpose Vehicle (SSPV), granting up to 22.5% equity interest in the joint venture. The investment will occur in three tranches, with initial funding to support feasibility studies and conditional future contributions tied to the project’s advancement.
Project Overview and Development Plans
The Speewah Fluorite Project, located in the Kimberley region of Western Australia, aims to produce acid-grade fluorspar, a critical component for semiconductor manufacturing and electric vehicle batteries. Tivan’s ongoing corporate restructuring is intended to streamline project financing and operations related to its fluorite and vanadium resources.
CEO Comments
Tivan Executive Chairman Mr Grant Wilson remarked, “To cap a year of material progress at Tivan, I am pleased to share the key terms of our proposed joint venture with Sumitomo Corporation. We are looking forward to finalising our joint venture in Q1 and to commencing a long-term partnership based on enterprising spirit and a common vision of shared prosperity.”
Future Outlook
The parties are working towards drafting binding agreements by March 2025, moving forward with exclusive negotiations related to the project. The joint venture reflects significant collaboration between Tivan and Sumitomo, demonstrating a mutual commitment to advancing this significant fluorite development project.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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