King River secures final $2.4m payment for Kimberley project sale
King River Resources has received the final $2.4 million cash payment owed by Tivan Limited for its acquisition of King River’s Speewah critical minerals project in WA’s Kimberley region.
Tivan, a Darwin-based ASX-listed critical minerals company, announced in February 2023 that it had signed a binding term sheet with King River to acquire 100 per cent of the issued capital of the King River subsidiary, Speewah Mining, which owns the Speewah project, for a total consideration of $20m.
King River’s drilling rig at the Speewah critical minerals project in the Kimberley region of Western Australia.
The consideration comprised $1m in Tivan shares, being 100 million shares at a deemed issue price of $0.10 per share and $10m in staged cash payments.
In February this year, King River agreed with Tivan to restructure the terms of Tivan’s final $5m consideration payable for the Speewah vanadium and fluorite project, for which Tivan is currently pursuing a phased development approach.
The restructured terms significantly reduced Tivan’s short-term payment obligation and provided for payments by instalment over the following 12 months, which enabled Tivan to focus its financial resources on advancing the Speewah fluorite and vanadium projects through 2024.
However, in accordance with the restructure payment terms, if the value of the 100 million Tivan shares held by King River should fall to less than $10m on February 17, 2025 – based on Tivan’s preceding 30-day volume weighted average price leading up to February 17 – Tivan will issue additional shares to King River on that date.
The additional Tivan shares would ensure that the combined value of the 100 million existing shares and the newly issued Tivan shares make up the originally contemplated total value of $10m.
King River is a significant shareholder in Tivan and supports Tivan’s proposed development strategy for the Speewah project.
The Speewah fluorite deposit represents Australia’s only JORC compliant fluorspar resource, as a potential source of the vital halide fluorine, which is of world class scale and grade and has a style of mineralogy capable of supporting high recovery rates.
