Tivan (ASX:TVN) and its Aitutu subsidiary signed a binding term sheet with Iron Fortune granting Aitutu an option to acquire the granted exploration and evaluation license MEL-2023-CA-ZB002 near the company's Baucau project in the Democratic Republic of Timor-Leste, according to a Thursday filing with the Australian bourse.
The company will pay AU$125,000 to Iron Fortune upon execution of the term sheet, and if it chooses to exercise the option before June 30, 2027, consideration payable to Iron Fortune will total AU$500,000, including AU$250,000 cash and AU$250,000 in shares, the filing said.
The company will review the existing dataset for the license to support the development of an exploration plan, per the filing.
Shares rose 2% in morning trade Thursday.