Investigator Resources has agreed to sell its 25% stake in the Molyhil tungsten-molybdenum project to Tivan Limited, unlocking over A$3 million in value and sharpening its focus on precious metals development.
- Sale of 25% interest in Molyhil Project to Tivan Limited
- Up to A$2.19 million in staged payments plus prior fluorite rights sale
- Strategic exit from non-core tungsten-molybdenum asset
- Refocus on advancing Paris Silver Project and precious metals
- Transaction subject to regulatory and land council approvals
Strategic Divestment to Unlock Value
Investigator Resources Limited (ASX, IVR) has taken a decisive step to streamline its portfolio by entering into a binding agreement to divest its 25% interest in the Molyhil Tungsten-Molybdenum Project in the Northern Territory to Tivan Limited (ASX, TVN). This transaction builds on an earlier sale of fluorite rights to Tivan, collectively unlocking over A$3 million in value from an asset that no longer aligns with Investigator's core focus.
Financial Terms and Considerations
The deal will deliver up to A$2.19 million to Investigator through staged payments, including an upfront deposit and completion payment totaling A$875,000. Deferred payments over the next three years offer flexibility, with options for cash or shares, subject to Tivan's election. The agreement also includes a parent company guarantee and escrow arrangements for shares issued as part of deferred payments, underscoring the structured nature of the transaction.
Aligning with a Precious Metals Strategy
Investigator’s Managing Director, Lachlan Wallace, emphasized that this divestment is a strategic move to sharpen the company's focus on precious metals, particularly silver and gold. By exiting the tungsten-molybdenum asset, Investigator aims to free up capital and management resources to accelerate development of its flagship Paris Silver Project in South Australia. The Paris project boasts a significant resource estimate and is positioned to benefit from strong demand in the silver market.
Looking Ahead
Completion of the sale remains subject to standard regulatory approvals and consent from the Central Land Council, with Investigator committed to keeping the market informed as conditions are met. This divestment marks a clear pivot towards precious metals, reflecting broader market trends and the company’s strategic priorities. Investors will be watching closely as Investigator advances its Paris Silver Project and explores complementary opportunities in the sector.
Bottom Line?
Investigator’s exit from Molyhil crystallizes value and signals a sharpened commitment to precious metals development.
Questions in the middle?
- How quickly will regulatory and land council approvals be secured to complete the sale?
- What impact will the divestment have on Investigator’s capital allocation for the Paris Silver Project?
- Could Investigator pursue further acquisitions or partnerships to complement its precious metals focus?