Sumitomo Corporation has received approval from the Foreign Investment Review Board (FIRB) for its initial investment in the Speewah fluorite joint venture (JV).
The FIRB confirmed that the Federal Treasurer has no objections to the initial equity investment by Japan Fluorite Corporation (JFC), a special-purpose subsidiary incorporated by Sumitomo for the JV.
“We are very pleased that FIRB approval has been provided for our joint venture with Sumitomo Corporation,” Tivan executive chair Grant Wilson said.
“At a complex moment for the global critical minerals sector, this timely approval reflects the abiding strength of the bilateral relationship between Australia and Japan.”
The FIRB approval clears the way for tranche one of JFC’s investment, totalling $5.3 million, in exchange for a 7.5 per cent equity stake in the JV.
These funds will support a feasibility study for mining and processing operations to produce acid-grade fluorspar for export to global markets.
Tivan entered into binding agreements with Sumitomo and JFC in May to form the JV, with JFC having the right to invest up to $60.3 million across three tranches for a maximum 22.5 per cent stake.
Tranche one remains subject to additional conditions, including the novation of Tivan’s grant funding under the Federal Government’s International Partnerships in Critical Minerals (IPCM) Program, and the completion of the project restructure, which involves transferring the Speewah tenements to the JV.
With FIRB approval now secured and Tivan having formally applied to novate its IPCM grant, the restructure is in its final stages.
Formal establishment of the JV and the tranche one investment are expected in the first half of July.
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