Tivan (ASX:TVN) said it has made material progress towards finalizing a binding incorporated joint venture (IJV) with Sumitomo and ETFS Capital for its Molyhil tungsten project in the Northern Territory, according to a Monday Australian bourse filing.

Under the proposed structure, Sumitomo would invest up to AU$25 million for an 8.75% interest in the IJV, with offtake rights covering up to 100% of production, while ETFS Capital would invest up to AU$25 million for an effective 8.75% interest in the project, per the filing.

The company has advanced its legal, tax, and corporate restructuring work, while Sumitomo has progressed with due diligence and completed a site visit, the filing said.

Sumitomo is expected to seek Foreign Investment Review Board approval shortly, with agreements targeted for completion in the fourth quarter, while the parties have extended their respective memoranda of understanding until Nov. 15, the filing added.

The company's shares rose 4% in recent Monday trade.