AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- King River Resources (ASX:KRR) has signed a binding term sheet with Tivan Limited for the sale of 100% of the Speewah Vanadium-Titanium-Iron Project.
- As per the terms of the agreement, total consideration to acquire the Speewah Project is AU$20 million.
- The funds will be used to advance gold and copper exploration at the company’s Tennant Creek and Mt Remarkable projects.
ASX-listed exploration mining company King River Resources Limited (ASX:KRR) has inked a binding term sheet with resources company Tivan Limited (ASX:TVN), under which the latter will acquire 100% of the issued capital of Speewah Mining Pty Ltd (SMPL).
KRR reported a 12% surge in its share price today post the announcement. Shares traded in the green zone, at AU$0.013, up 12.499% at 11:5 AM AEDT on 20 February 2023. At the time of writing, the trading volume was over 2.8 million and KRR’s market capitalisation stood at AU$18.64 million. King River Resources’ share price has surged by 30% in past one month.
An overview of the Speewah project
SMPL is the owner of the Speewah Vanadium-Titanium-Iron Project, which is located in the East Kimberley region of North Western Australia. The Speewah Project includes tenements defined as exploration licences E80/3657, E80/2863, miscellaneous licences L80/47 and L80/43, and mining licences M80/267, M80/268 and M80/269.
Image source: Company website
Details of the term sheet
As per the terms of the signed term sheet, the two parties have agreed for the deal with a total consideration of AU$20 million.
This includes issue of 100 million Tivan shares at a deemed issue price of AU$0.10 per share, and AU$10 million in cash, which will be paid in three phases over a period of one year.
On completion, an initial payment of AU$2.5 million will be made.
Data source: Company update, Image source: © Utah778 | Megapixl.com
The final AU$5 million cash payment will only be paid if an application to extend the term of E80/3657 is granted within 12 months.
The completion of the transaction is subject to various conditions including KRR shareholder approval by 31 March 2023. The transaction is also dependent on the completion of an independent geological assessment to validate the reported resources of Speewah by 27 February 2023.
Proceeds to advance copper and gold exploration
King River Resources plans to utilise the proceeds from the transaction to advance gold and copper exploration activities at its Tennant Creek and Mt Remarkable projects over the next two years.
The Tennant Creek Project, comprising gold and copper exploration leases, is located to the East, Southeast and South of the very rich historic goldfields of Tennant Creek. Treasure Creek Pty Ltd, a 100% owned subsidiary of KRR, holds the Tennant Creek tenements. The 16 tenements cover an area of 6,629 square kms.
Whitewater Minerals Pty Ltd, a 100% owned subsidiary of KRR, owns the Mt Remarkable Project, which is 200km south west of Kununurra in the East Kimberley, Western Australia. The project, covering four tenements totalling 382 square kms, covers the prospective Whitewater Volcanic rocks that extend 200km along a NE-SW strike south of the Speewah Dome.
