Tivan’s proposed $50 million joint venture for the Molyhil tungsten project in the Northern Territory has moved closer to binding agreements, with Sumitomo Corporation expected to seek Australian foreign investment approval shortly.
Tivan said it had made material progress on the incorporated joint venture with Sumitomo and ETFS Capital, including advancing the legal, tax and corporate restructuring work needed to establish the new ownership structure.
The parties are targeting execution of the long-form agreements during the fourth quarter of 2026. However, the proposed investments remain subject to final binding documentation and regulatory approvals.
Under a memoranda of understanding signed in June, Sumitomo may invest up to $25 million in stages for an interest of up to 8.75 per cent in the Molyhil joint venture.
The Japanese trading house’s proposed investment includes an initial $4.5 million investment and potential offtake arrangements covering up to 100 per cent of production from the Northern Territory project.
ETFS Capital may separately invest up to $25 million, including an initial $4.5 million, for a 9.589 per cent interest in the holding company through which Tivan would own its stake. This would give ETFS Capital an effective 8.75 per cent interest in Molyhil.
It was previously reported that the structure would allow Tivan to retain an effective 82.5 per cent interest at the final investment decision while securing a potential long-term customer for the project’s tungsten production.
Since signing the key terms, Tivan has incorporated new holding and special-purpose vehicles to restructure its ownership of Molyhil and completed legal and tax due diligence on the joint venture structure.
Sumitomo has also advanced its second stage of project due diligence after completing a site visit in July, and Tivan expects the company to shortly apply to the Foreign Investment Review Board for approval of its proposed investment.
To support the final negotiations, Tivan has extended its separate memoranda with Sumitomo and ETFS Capital until November 15.
The progress follows Tivan’s completion of the Molyhil acquisition in January. Located about 220km north-east of Alice Springs, the project hosts a mineral resource of 4.64 million tonnes at 0.26 per cent tungsten trioxide and 0.09 per cent molybdenum.
Molyhil operated as a small-scale open pit during the 1970s but has been dormant since 1982, and since then, Tivan has advanced drilling and a pre-feasibility study after an April scoping study supported the project’s technical and economic potential under its stated assumptions.
Further drilling has been designed to test for additional tungsten-molybdenum mineralisation beyond the existing deposit while collecting data for resource definition, metallurgical and development work.
The company is positioning Molyhil alongside its nearby Sandover fluorite project as the foundation of a broader central Australian critical minerals precinct.