Tivan Raises $5M at $0.105 per Share, Eyes $51.3M Equity for Speewah Development

Strategic Capital Raise to Propel Speewah Development

Tivan Limited (ASX: TVN) has taken a decisive step towards advancing its Speewah Fluorite Project in Western Australia by securing a $5 million share placement with a prominent Australian family office investor. The shares were issued at a price of $0.105 each, accompanied by free-attaching listed options exercisable at $0.20, reflecting a modest discount to recent trading prices. This initial capital injection is designed to support ongoing development activities at both the Speewah and Sandover Fluorite Projects, while also bolstering the company’s working capital position.

Complementing this placement, Tivan has entered into a non-binding term sheet outlining a proposed $51.3 million equity investment from the same investor. This substantial funding is earmarked specifically for the construction and commissioning phases of the Speewah Project, aligning with Tivan’s broader joint venture arrangements with Sumitomo Corporation and its subsidiary, Japan Fluorite Corporation (JFC).

Investor Commitment and Standstill Agreement

Notably, the investor has agreed to a standstill period of up to 18 months, during which they will not sell the placement shares. This arrangement signals a strong commitment to the project’s long-term success and provides Tivan with a stable shareholder base during critical development milestones. The placement shares and options will be issued under ASX Listing Rules 7.1A and 7.1 respectively, with settlement anticipated by mid-May 2025.

The equity investment will be structured through Fluorite Holding SPV Pty Ltd (FHSPV), a wholly owned subsidiary of Tivan that holds the joint venture vehicle responsible for the project. While the exact equity stake for the investor is yet to be finalized, it is expected to remain below 22.5%, preserving Tivan’s controlling interest and minimizing shareholder dilution.

Joint Venture Framework and Funding Strategy

The funding arrangements are closely tied to the binding joint venture agreements executed with Sumitomo Corporation and JFC. Under these agreements, Tivan is responsible for providing up to $51.3 million in equity funding, subject to final capital costs and further funding requirements. The investor’s subscription is conditional upon a final investment decision and the progression of tranche investments by JFC, underscoring the collaborative nature of the project’s financing.

Executive Chairman Grant Wilson emphasized the strategic importance of this funding approach, highlighting Tivan’s preference for utilizing a special purpose vehicle to bridge the project’s equity gap. He noted that the investor’s anchoring of the term sheet with a standstill arrangement demonstrates strong intent and confidence in the project’s prospects. The company aims to finalize binding agreements ahead of its upcoming annual general meeting, advancing its project finance strategy while safeguarding existing shareholders from dilution.

Looking Ahead

As Tivan progresses through due diligence and negotiations, the market will be watching closely to see how these funding arrangements translate into tangible development milestones for the Speewah Fluorite Project. The successful execution of this capital raise and joint venture framework could position Tivan as a key player in the fluorite mining sector, with significant implications for its growth trajectory and shareholder value.