Tivan Completes $20M Speewah Acquisition with No Additional Shares Issued

Background to the Acquisition

After a two-year negotiation and payment process, Tivan Limited (ASX: TVN) has officially completed its acquisition of the Speewah Project, a critical minerals asset located in the Kimberley region of north-east Western Australia. The project was acquired from King River Resources Limited (KRR) for a total consideration of $20 million, split evenly between shares and staged cash payments.

Initially announced in February 2023, the deal involved Tivan issuing 100 million shares to KRR at a deemed price of $0.10 per share, alongside cash payments structured over time. A payment restructure agreed in early 2024 extended the final $5 million payment deadline to February 17, 2025, with provisions for additional shares if Tivan's share price fell below the $0.10 threshold.

Finalisation and Share Price Impact

On the critical date of February 17, 2025, Tivan's 30-day volume weighted average price (VWAP) exceeded the $0.10 benchmark, meaning no further shares were required to be issued to KRR. This outcome not only avoided dilution for existing shareholders but also reflected positively on market confidence in Tivan’s strategic direction.

Following the final cash payment of $2.4 million made ahead of schedule in December 2024, all contractual obligations under the binding term sheet and payment restructure have now been fulfilled. KRR has released its security interest over the Speewah Project shares and lodged the necessary documentation to remove the registration of security on the Personal Property Securities Register.

Strategic Implications and Next Steps

Executive Chairman Grant Wilson highlighted the significance of this milestone, noting that securing unencumbered ownership of the Speewah Project positions Tivan advantageously for its upcoming joint venture with Sumitomo Corporation focused on the Speewah Fluorite Project. The timing of the completion aligns closely with the planned partnership, suggesting a coordinated approach to advancing the project’s development.

The Speewah Project, rich in critical minerals, is a key asset in Tivan’s portfolio, and the removal of encumbrances enhances its appeal to strategic partners and investors. The collaboration with Sumitomo, a major global player, could accelerate exploration and development activities, potentially unlocking significant value.

While the acquisition completion is a positive development, the market will be watching closely how the joint venture unfolds and how Tivan manages operational execution amid fluctuating commodity markets and geopolitical factors influencing critical minerals demand.