PERTH (miningweekly.com) – ASX-listed Tawana Resources will raise A$15-million through a share placement to advance the Bald Hill lithium and tantalum project, in Western Australia, to commissioning by late 2017.

Tawana on Thursday said that it has received firm commitments from domestic and offshore institutional investors for the placement of 60-million new fully paid ordinary shares, priced at 25c each.

The placement will take place in two tranches, with the first comprising 35.9-million shares and to be issued under the company’s placement capacity. The second tranche of 24.1-million shares will be issued subject to shareholder approval.

“We are extremely pleased with the level of support from the placement, particularly from some existing domestic institutional shareholders and new Australian and international institutions who have joined the register,” said Tawana MD Mark Calderwood.

“These funds, in conjunction with the offtake prepayment gives us the funding required for the capital component of the dense media separation plant as we rapidly progress towards spodumene production.”

In particular, the funds will be used to complete resource drilling, ordering long-lead capital items, complete detailed design and start engineering on the dense media separation circuit, civil works, earthworks, mechanical and electrical works, mobilization of engineers, site establishment and associated project works.

Tawana is earning a 50% interest in the Bald Hill mine, and would see Tawana spend a minimum of A$7.5-million by the end of December, on exploration, evaluation and feasibility. It would also spend A$12.5-million by the end of December 2019 to upgrade and convert the plant for processing ore derived from the project.

Tawana in January launched a feasibility study at the Bald Hill project, which will look at a staged flow sheet to reduce the time and cost to initial production, allowing for a fast-tracked operation from the study to detailed design, construction, commissioning and concentrate production.