The placement was strongly supported by domestic and offshore institutional investors.
Tawana entered into a farm-in agreement with Alliance Mineral Assets (SGX:40F) in February 2017 with respect to Alliance’s Bald Hill lithium project in the Eastern Goldfields.
Upon completion of Tawana’s expenditure commitment of $7.5 million by 31 December 2017, it shall be entitled to 50% of all rights to lithium minerals from the project.
It is worth noting that the placement follows the signing of a binding five-year exclusive lithium concentrate offtake agreement with Hong Kong-listed Burwill Holdings.
The offtake agreement includes a prepayment of $25 million.
Tawana’s share of the prepayment is $12.5 million of which $3.75 million has been received with the final instalments to be received in July 2017 and September 2017.
The funds raised under the placement and offtake prepayment will primarily be used to advance the Bald Hill project in order to meet the projected start of commissioning in late 2017.
The funds will be used to complete resource drilling, ordering long lead capital items, complete detailed design and commence engineering works.
Tawana’s share price has doubled since the start of 2017, last trading at $0.245.