Australia-based resource and mineral processing technology company Tivan is set to acquire the Speewah vanadium-titanium-iron project in Western Australia.

The company has signed a binding term sheet with exploration mining company King River Resources to acquire Speewah Mining (SMPL), which owns the Speewah project.

Under the Binding Term Sheet, Tivan will acquire SMPL for a total consideration of $20m.

The total consideration includes $10m in new Tivan shares at a price of $0.10 per share, and $10m in cash in three staged payments.

The acquisition is expected to be completed in late March this year, subject to various conditions including KRR shareholder approval to be sought at a general meeting.

Tivan executive chairman Grant Wilson said: “Speewah is a game changer for Tivan, for northern Australia and for the critical minerals sector globally.

“It provides a crucial impetus for the Board in progressing the Tivan Processing Facility at Middle Arm in Darwin, and it radically improves the company’s outlook in pursuing feasibility and long-term value creation for shareholders.

“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.”

Speewah is located 100km south of the port town of Wyndham in the Kimberley region in the north-western region of Western Australia.

The project is said to host the largest reported vanadium in titanomagnetite resources in Australia.

It contains JORC-compliant Mineral Resources of Measured, Indicated and Inferred Resources of 4.7 billion tonnes at 0.30% V2O5, 14.7% Fe and 3.3% TiO2.

Tivan believes that the Speewah project is amenable to processing with the TIVAN Process, its own patented processing technology for titanomagnetite ore bodies.

The company now owns two large-scale vanadium in titanomagnetite deposits in Australia, the Mount Peake vanadium-titanium-iron project in the Northern Territory, and Speewah.

Grant Wilson added: “The Speewah acquisition extends well beyond the relevant tenement holdings, to include all of the extensive pre-development work that KRR has pursued and financed over the past decade.

“The prior involvement of SMS Group and APM Consultants, both long-standing service providers of Tivan, will assist materially in expediting project feasibility studies.

“Additionally, the extensive prior planning of the company at Middle Arm will serve to expedite project delivery, and has already been strongly facilitative in onboarding processes with the master planning team for MASDP at the Department of Infrastructure, Planning and Logistics.”