SYDNEY, AUSTRALIA: The Board of Tivan Limited (ASX: TVN) has signed a binding term sheet with King River Resources Limited (ASX: KRR) to acquire 100% of the issued capital of Speewah Mining Pty Ltd (SMPL), the owner of the Speewah Vanadium-Titanium-Iron Project located 100km south of the port town of Wyndham in the Kimberley region in north-west Western Australia.
Under the Binding Term Sheet, total consideration for the acquisition is $20 million, comprising $10 million in new Tivan shares at a deemed issue price of $0.10 per share, and $10 million in cash by way of three staged payments including an initial $2.5 million payment at completion of the acquisition. Completion is subject to a number of conditions including, if necessary, KRR shareholder approval to be sought at a general meeting, expected to be held in late March.
Speewah hosts the largest reported vanadium in titanomagnetite resources in Australia, and one of the largest globally, containing JORC compliant Mineral Resources of Measured, Indicated and Inferred Resources of 4.7 billion tonnes at 0.30% V2O5, 14.7% Fe and 3.3% TiO2 (0.23% V2O5 cut-off grade).
Beneficiation testwork undertaken by KRR on Speewah ore to produce magnetite concentrates confirmed that the vanadium grades in Speewah concentrates are some of the highest returned from any titanomagnetite resource globally. Speewah is considered amenable to processing with the TIVAN® Process, the Company’s 100% owned patented processing technology for titanomagnetite ore bodies.
The acquisition will result in the Company owning two large-scale vanadium in titanomagnetite deposits in Australia – the Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory and Speewah. This will provide the Company with crucial impetus for feeding its planned centralised TIVAN® Processing Facility at Middle Arm, Darwin.