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Highlights
- Speewah is a Vanadium-Titanium-Iron Project in North-West Western Australia
- The acquisition allows for the start of geophysical exploration program at Tennant Creek
- King River Resources would get total consideration of AU$20 million (cash, and issue of Tivan shares)
ASX-listed King River Resources Limited (ASX: KRR) has announced the completion of a AU$20 million transaction for the company, including AU$2.5 million in cash, alongside AU$10 million through issue of shares in another Australian-listed critical minerals entity Tivan Limited (ASX: TVN). The remaining portion of AU$7.5 million would be paid by 17 February next year. The critical minerals company has acquired the issued capital (100%) of Speewah Mining, which owns the Speewah Project.
King River Resources reported a cash position of ~AU$4 million as on 11 April 2023.
Image source: Company website
KKR-TVN development
Tivan has fully acquired the issued capital of Speewah Mining Pty Ltd. King River Resources has reported that this development allows for the approval of AU$1.25 million geophysical exploration program in Tennant Creek, located in the Northern Territory of Australia. This would concentrate on drill positioning over pre-determined targets in the Tennant Creek field. The drilling is likely to begin in the middle of this year.
According to the Binding Term Sheet, the total consideration (AU$20 million) for King River Resources includes:
- Cash amounting to AU$2.5 million
- Issue of Tivan's 100 million ordinary fully paid shares (AU$10 million) to King River Resources, with deemed price of 10 cents/share
KRR has said that the issue of TVN shares is subject to voluntary escrow for two years (17 February 2025). Further, the remainder portion of AU$7.5 million would be paid to KRR by 17 February 2024.
The ASX-listed shares of King River Resources had jumped more than 18% at the time of writing on 12 April 2023, with company's market cap above AU$17 million.