Tivan (ASX:TVN) expects to finalise binding joint venture agreements for its Molyhil Tungsten Project in the Northern Territory during the December quarter.
The company reports material progress towards concluding an incorporated joint venture (IJV) with Sumitomo Corporation (TYO:8053) and ETFS Capital (ETFSC) for the development, financing, operation, and marketing of the tungsten project.
Tivan signed separate key terms memorandums of understanding with both parties in June 2026, outlining the framework for the proposed partnership structure.
Under the agreements, Sumitomo may make staged equity investments of up to $25 million, including $4.5 million for an initial interest, securing an equity interest of up to 8.75% in the IJV.
The Japanese trading house would also agree offtake arrangements for up to 100% of production from the project.
ETFSC may make staged equity investments of up to $25 million, including $4.5 million for an initial interest, for an equity interest of up to 9.589% in the holding company that holds Tivan’s interests in the IJV.
This structure provides ETFSC with an effective 8.75% interest in the project, matching Sumitomo’s stake.
The company has advanced key facilitation workstreams including incorporating new holding and special purpose vehicles to restructure its ownership of the project. It has also completed legal and tax due diligence on the IJV structure.
Sumitomo has materially progressed a second stage of due diligence for the project and completed a site visit in July 2026.
Reflecting the advanced stage of negotiations, Tivan expects Sumitomo will shortly apply to the Australian Government’s Foreign Investment Review Board seeking approval for its proposed investment in the IJV.
The parties have agreed to extend the term of their respective key terms memorandums of understanding to 15 November 2026 to facilitate finalisation of the binding agreements.
Based on prior transactional experience at the Speewah Fluorite Project, the parties anticipate execution of agreements in the December quarter.
The Molyhil Tungsten Project represents a strategic asset for Tivan. Global demand for tungsten continues to strengthen, driven by its critical applications in defence, aerospace, and industrial sectors.
Tivan is an Australian critical minerals company advancing fluorite, vanadium, tungsten, and copper-gold projects across Western Australia, the Northern Territory, and Timor-Leste.
Write to JC Villarba at Mining.com.au
Images: Tivan
