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Tawana Resources gains on $40 million funds backing Alliance Mineral Assets merger, Bald Hill mine pick-up

The Bald Hill Lithium and Tantalum Mine asset in WA is a drawcard for Tribeca lenders.
Tawana Resources gains on $40 million funds backing Alliance Mineral Assets merger, Bald Hill mine pick-up
Australian dollars

Tawana Resources NL (ASX:TAW) (FRA:TJR) (JSE:TAW) has added 20% on its return to the bourse after securing a $40 million funding package from a Tribeca Investment Partners-led consortium.

The tri-listed lithium producer said the loan funding “significantly strengthened” its balance sheet and expected the support would expedite an Australian market listing of Alliance Mineral Assets Ltd (SGX:40F).

 

Tawana managing director Mark Calderwood spoke to Proactive Investors’ Stocktube video channel about the company’s ongoing merger with the Bald Hill Mine co-owner Alliance, in a video interview today.

Calderwood said: “The two companies are going to merge to make a larger, more streamlined company going forward ... we fully intend to stay on the ASX.”

The MD affirmed the combined pair planned to seek a Singapore listing and called the partners marry-up a “merger of equals.”

Calderwood reported to the market today the Tribeca and investor support was a “great endorsement of the Bald Hill Lithium and Tantalum Mine.”

The company leader laid out the development of Bald Hill mine in the video interview and spoke about production at the Western Australian site.

Calderwood told the market: “Tawana and Alliance have always remained committed to an ASX-listing of the merged group and the conditional MergeCo facility will increase balance sheet liquidity as we ramp up lithium production and advance optimisation of the mine and the processing facilities.

“We also believe it paves the way towards an expeditious listing of Alliance on ASX.”

Tribeca’s Global Natural Resources Credit Fund portfolio manager Haydn Smith said the fund saw Bald Hill as “incredibly strategic particularly with respect to blending other lower grade ores and are pleased to continue supporting the project.”

Smith said: “Having reviewed most hard-rock spodumene projects globally, we believe Bald Hill is uniquely positioned.

“The project has the lowest capital intensity in the sector and produces a coarse product anomalously low in magnesium, iron, mica and other deleterious materials, making it highly sought after by lithium converters.

“We believe that Bald Hill spodumene will ultimately command its own pricing mechanism, much like high-grade iron ore or high-energy thermal coal.”

World context

Hard-rock lithium deposits are found across the globe, with AVZ Mineral’s Manono project in the Democratic Republic of Congo being the largest hard-rock spodumene deposit.

Avz Minerals Ltd (ASX:AVZ) (FRA:3A2) (OTCMKTS:AZZVF) produced a maiden mineral resource for the 60%-owned lithium-tin-tantalum project in Tanganyika province last month, reporting total measured, indicated and inferred resources of 259.9 million tonnes grading 1.63 per cent spodumene for 4.25 million tonnes of lithium oxide.

The measured and indicated tin resources, of 871 ppm and 844ppm from 43Mt and 104.7Mt of ore, are also significant.

Battery metals producers are looking for reliable, long-term supplies of lithium, in western and politically stable nations across the globe.

Western Australia-based Tawana is set to benefit from the push and its merger with Alliance, as it gains access to a mine located in the welcoming mining state it already calls home, Western Australia.

Tawana closed 5 cents, or 20%, up to 30 cents.

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