Tivan Limited has secured $9 million through a share placement backed by institutional and sophisticated investors, aiming to fund key fluorite and vanadium projects alongside general working capital needs.
- Placement of approximately 85.7 million shares at $0.105 each
- Free-attaching options offered with exercise price of $0.20 expiring in 2027
- Funds allocated to Sandover and Speewah projects, new initiatives, and working capital
- Strong support from new east coast institutional investors and existing major shareholders
- Placement complements government grants and potential Sumitomo joint venture funding
Tivan Secures Fresh Capital Injection
Tivan Limited (ASX: TVN), a player in the critical minerals sector, has announced a successful placement raising up to $9 million. The capital raise involved issuing approximately 85.7 million fully paid ordinary shares at a price of $0.105 per share, representing a modest discount to recent trading prices. Alongside the placement, investors will receive free-attaching options exercisable at $0.20 each, expiring in September 2027.
Investor Confidence and Strategic Backing
The placement attracted firm commitments from both Australian and international institutional investors, as well as sophisticated investors. Notably, Executive Chairman Grant Wilson personally contributed around $3.5 million, reducing brokerage costs and signaling strong insider confidence. The raise also marks the first involvement of several east coast institutional investors, broadening Tivan's shareholder base.
Targeted Use of Funds Across Projects
The funds will be strategically deployed across Tivan’s portfolio, with $2 million earmarked for resource definition at the Sandover Fluorite Project and another $2 million reserved as contingency for the Speewah Fluorite Project. Additional allocations include $1.2 million for a new project initiative at Sandover Aluminium, $0.2 million for the Speewah Vanadium Project, and $1.2 million for general corporate purposes and working capital. The company also plans to repay a convertible note and cover offer costs.
Complementing Government and Corporate Partnerships
This capital raise complements Tivan’s $7.4 million cash grant from the Australian Government’s International Partnerships in Critical Minerals Program and anticipated equity investments totaling $10 million from Sumitomo Corporation under a joint venture memorandum of understanding. These combined funding sources position Tivan well for advancing the Speewah Fluorite Project towards a final investment decision.
Maintaining Capital Discipline Amid Growth
Over the past 18 months, Tivan has raised approximately $34 million with an average discount of 6.5%, reflecting disciplined capital management. Executive Chairman Grant Wilson emphasized the company’s focus on capital efficiency and the potential for super-normal returns from its portfolio. The company’s ability to attract diverse funding sources while maintaining tight cost control underscores its strategic positioning in the critical minerals market.
Looking Ahead
The placement shares will be issued under the company’s available capacity, with quotation expected shortly after settlement. The free-attaching options offer investors potential upside, though their exercise remains uncertain. As Tivan progresses with its projects and partnerships, market participants will be watching closely to see how effectively the company translates this capital into operational milestones and value creation.
Bottom Line?
Tivan’s latest capital raise underscores its growing appeal and readiness to advance key projects, but execution risks remain as the company scales up.
Questions in the middle?
- Will the free-attaching options be exercised, and how will that impact future capital structure?
- How soon can Tivan advance the Speewah Fluorite Project to a final investment decision with this funding?
- What are the terms and timing for the anticipated Sumitomo Corporation equity investments?