Tivan has launched a pro-rata non-renounceable entitlement offer to fund its next phase of advancement and priority resources projects.
The company intends to raise $7.5 million via 150.2 million new fully paid ordinary shares to eligible shareholders at an issue price of $0.05 per new share, which represents a 5.7 per cent discount to Tivan’s last closing price of $0.053 per share on August 14.
The new shares issued under the entitlement offer will rank equally with Tivan’s existing shares on issue.
The capital raise will be used to repay debit related to the Speewah project acquisition, as well as development planning for the Speewah fluorite project in Western Australia, exploration at the Sandover project in the Northern Territory, and using TIVAN+ technology to support Speewah’s vanadium potential.
The funding will also be used to finalise Tivan’s joint venture with Sumitomo Corporation. In June, Tivan formed a strategic alliance with Sumitomo to accelerate growth at the Speewah fluorite project.
The agreement provides a framework for both parties to negotiate a formal joint venture agreement for the development, financing and operation of Speewah.
“Tivan has received many requests from our retail shareholder base for the opportunity to participate in capital raisings this year,” Tivan executive chairman Grant Wilson said.
“Today’s entitlement offer provides a mechanism to facilitate such participation, while also providing Tivan with important flexibility as we move forward. We have established deep intrinsic value at the company this year and we have major catalysts directly ahead.
“The proposed use of funds reflects these priorities and will ensure Tivan is optimally placed to finalise our joint venture with Sumitomo Corporation before year end.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
