Join our daily newsletter At The Bell to receive exclusive market insights
- The quotation of King River Resources (KRR) shares is on the line as the company announces a deal to offload its Speewah project in Western Australia
- ASX-listed Tivan (TVN) has agreed to pay KRR $20 million in cash and shares to take over the project, subject to approval by KRR shareholders
- The project is currently KRR’s main undertaking, meaning under ASX listing rules, the company has six months to satisfy certain conditions to keep its shares quoted
- KRR plans to use the funds raised by the proposed transaction for broad gold and copper exploration over the next two years
- King River shares are up 8.3 per cent trading at 1.3 cents and TVN shares are up 2.5 per cent trading at 8.3 cents at market close
The quotation of King River Resources (KRR) shares is on the line as the company announces a deal to offload its Speewah project in Western Australia
King River has signed a binding term sheet with fellow ASX-listed Tivan (TVN) for the issued capital of Speewah Mining, which operates the Speewah vanadium-titanium-iron project in the East Kimberley region.
Tivan will pay KRR $20 million, comprising $10 million in cash and $10 million worth of TVN shares, to takeover Speewah. An initial $2.5 million cash is due on completion of the deal, which is subject to approval from KRR shareholders.
The Speewah project is KRR’s main undertaking, meaning under ASX listing rules, the company has six months to satisfy certain conditions to keep its shares on the market. These rules oblige a listed entity to satisfy that the level of its operations is sufficient, and its financial condition adequate, to warrant continued quotation of its securities.
Given the circumstances, KRR will have six months to demonstrate to the ASX that it is compliant with these listing rules. If not satisfied, the ASX will suspend trading of KRR’s securities.
The company’s board previously advised shareholders it was investigating a potential sale or joint venture with a number of parties for the Speewah project and now believes an outright sale to Tivan to be in its best interests.
Tivan Executive Chairman Grant Wilson said acquiring the project would be a game changer not only for the company but for northern Australia and the critical minerals sector globally.
“My central expectation is that the acquisition will put Tivan and Darwin at the forefront of forward-facing critical minerals on a global basis in the years and decades ahead,” Mr Wilson said.
“Tivan now has the foundations required to build a sustainable, long-life, vertically integrated megaproject, the first and only of its kind in the world.”
If the deal is approved, KRR intends to use the $10 million cash raised by the transaction for broad gold and copper exploration over the next two years.
KRR shares were up 8.3 per cent to 1.3 cents and TVN shares were up 2.5 per cent to 8.3 cents at market close.
