Tivan (ASX:TVN) signed a memorandum of agreement with Japanese firm Sumitomo with the goal of establishing a joint venture for the Speewah fluorite project in Western Australia, according to a Tuesday filing with the Australian bourse.

Both parties will not work together to finalize a binding deal to establish a joint venture for the project by March 2025, the filing said.

The MoU replaces the previous strategic alliance agreement between the companies following due diligence, the filing added. Tivan is currently undergoing a corporate structure as part of the requirement for Sumitomo's investment in the mining firm.

Tivan's shares surged nearly 28% in recent Friday trade and earlier hit a new 52-week high.