Tivan (ASX: TVN) has signed key terms memorandums of understanding with Sumitomo Corporation and ETFS Capital for the planned development, financing, operation, and marketing of the Molyhil tungsten project in the Northern Territory.
The proposed structure establishes a framework for up to $50 million in stage-gated investment, with Tivan retaining an effective 82.5% project interest at final investment decision (FID).
Sumitomo may invest up to $25m for an equity interest of up to 8.75% in the incorporated joint venture (IJV), while ETFS may invest up to $25m for an effective 8.75% project interest through Tivan’s holding structure.
The parties are targeting completion of long-form binding agreements by the third quarter of 2026, subject to regulatory processes including any required Foreign Investment Review Board approvals.
Joint Venture Pathway
Tivan is planning to develop Molyhil through an IJV, following a similar strategic approach to its Speewah fluorite project in Western Australia.
Sumitomo—a leading Japanese trading house with global interests across mineral resources and industrial chemicals—is already Tivan’s joint venture partner at Speewah.
ETFS Capital, the family office of Graham and Louise Tuckwell, is a substantial shareholder in Tivan and a strategic partner in Speewah.
Tivan considers the structure a way to bring strategic partner capability into Molyhil while limiting shareholder dilution and preserving majority exposure to the project.
Special Purpose Vehicle
Under the Sumitomo terms, the Japanese group’s proposed investment would be made in two instalments through a special purpose vehicle.
The first instalment would comprise $4.5m for an initial 3% interest to help fund the pre-feasibility study (PFS), definitive feasibility study (DFS) and funding plan.
Subject to completion of the DFS and a FID to proceed, Sumitomo may provide a further $20.5m for an additional 5.75% interest.
Sumitomo may also secure offtake arrangements for up to 100% of life-of-mine production from Molyhil on commercial terms.
ETFS Matches Project Exposure
ETFS Capital’s proposed investment would also be made in two instalments, with $4.5m initially and a further $20.5m subject to the DFS and FID.
Its investment would be made into MNT Holdings, the holding company that owns Tivan’s interest in the project vehicle.
The structure would give ETFS up to 9.59% of MNT Holdings and an effective 8.75% interest in Molyhil, matching Sumitomo’s proposed project exposure.
The ETFS memorandum is non-binding and non-exclusive, while the Sumitomo memorandum is non-binding and exclusive unless Sumitomo agrees otherwise.
‘Extreme Valuation Uplift’
Executive chair Grant Wilson praised his team’s dedication to resuscitating the project.
“With our announcement today, Tivan has established a credible and trusted pathway for project finance, as well as for marketing and distribution,” he said.
“We have achieved extreme valuation uplift in a short period of time, whilst ensuring that our strategic partners have strong participation interests, encouraging their involvement in future projects including at our adjacent Sandover fluorite project.”
“We are grateful to Sumitomo Corporation and ETFS Capital for keeping pace with us, and for joining us in central Australia, where Tivan is deeply committed—we look forward to the journey ahead together.”
Molyhil Studies Progress
Tivan acquired Molyhil in September 2025 and completed the transaction in January, after the project had been inactive for decades.
The project hosts a JORC 2012 mineral resource estimate of 4.647 million tonnes at 0.26% tungsten trioxide and 0.09% molybdenum for 12,100t of tungsten trioxide and 4,400t molybdenum.
A scoping study released in April returned a base case pre-tax net present value at an 8% discount rate of $534.3m, an internal rate of return of 114.2%, and a payback period of 0.8 years from production start.
Tivan is progressing a PFS for completion in the fourth quarter of 2026, ahead of a planned DFS to support a FID.
