Sign up Australia
Proactive Investors - Run By Investors For Investors

Tawana Resources secures funds to progress Bald Hill lithium farm-in

Placement follows the signing of a lithium concentrate offtake agreement.
Tawana Resources secures funds to progress Bald Hill lithium farm-in
Start of project commissioning expected in late 2017

Tawana Resources NL (ASX:TAW) has received commitments to raise $15 million via the issue of shares at $0.25 each, to progress its Bald Hill lithium farm-in project in Western Australia.

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.

View full TAW profile View Profile

Tawana Resources NL Timeline

Related Articles

February 08 2018
The Gunnison Copper Project is slated for commercial production in the second half of this year
Alaska map
October 03 2018
The project includes the “smoking gun” deposit Zackly which contains an inferred resource of 41,200 tonnes of copper, 213,000 ounces of gold and 1.5 million ounces of silver, with mineralisation continuing 100 metres below the bounty.
August 07 2018
Production at Hellyer is expected to begin in the fourth quarter

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use