Australia's Molyhil Tungsten-Molybdenum Project Advances A$50 Million Joint Venture Transaction

en.Wedoany.com Reported - On October 5, Australian mining company Tivan updated the progress of the joint venture transaction for the Molyhil tungsten-molybdenum project in the Northern Territory. The company is advancing long-term binding agreements with Japan's Sumitomo Corporation and ETFS Capital to establish a corporate joint venture. The three parties have completed part of the legal, tax, and corporate restructuring work, and have extended the deadline of the previously signed key terms memorandum of understanding to November 15. The long-term agreement is still planned to be completed in the fourth quarter of 2026.

Under the transaction framework finalized in June, Sumitomo Corporation may invest up to A$25 million in stages into the proposed joint venture, ultimately acquiring up to an 8.75% interest; ETFS Capital may likewise invest up to A$25 million and indirectly acquire up to an 8.75% project interest. The two partners' potential equity investments total up to A$50 million. Sumitomo Corporation intends to submit an approval application to the Australian Foreign Investment Review Board (FIRB) for its investment.

The proposed scope of cooperation with Sumitomo Corporation also includes tungsten product offtake arrangements for the Molyhil project, with framework terms allowing it to offtake up to 100% of the project's tungsten production. The proposed joint venture will cover project development, financing, operations, and product sales. The final equity structure, staged funding arrangements, and offtake terms still need to be incorporated into long-term binding agreements.

The Molyhil project is located approximately 220 kilometers northeast of Alice Springs in the Northern Territory of Australia. Tivan's disclosed JORC 2012 mineral resource is 4.647 million tonnes at 0.26% tungsten trioxide (WO₃) and 0.09% molybdenum, calculated at a 0.05% WO₃ cut-off grade, containing approximately 12,100 tonnes of WO₃ and 4,400 tonnes of molybdenum. The project plans to construct tungsten scheelite concentrate and molybdenite concentrate mining and processing facilities.

Tivan completed the Molyhil project scoping study in April 2026 and is currently advancing the pre-feasibility study, while conducting resource, metallurgical, geotechnical, and groundwater-related development work. The company has obtained Northern Territory government approval and Central Land Council sacred site clearance required for approximately 8,000 meters of project development drilling program. The relevant drilling data will be used for the pre-feasibility study and subsequent development design. The existing project timeline sets the target for a final investment decision in the fourth quarter of 2027.

Tivan completed the acquisition of the Molyhil project in 2026. Thor Energy previously confirmed that the total consideration for the transaction was A$6.5625 million, of which A$2.25 million in cash has been paid, with an additional A$3.9375 million in deferred payments scheduled until 2028.