PERTH (miningweekly.com) - The shareholders of ASX-listed Tawana Resources on Friday gave their blessing for a demerger of the company’s noncore assets.
The company in March announced plans to spin-out its Cowan and Yallari lithium projects, in Western Australia, and the Mofe Creek iron-ore asset, in Liberia, into a separate entity.
Tawana would retain a 15% interest in the new company, and would initially provide services to this company. In addition, Tawana would also reserve to itself certain access and water rights from the Cowan project, which would support operations at Bald Hill.
Tawana said on Friday that with board and shareholder approval now in place, the company will proceed to implement a capital reduction and demerger, with the completion of the transaction slated for July 18.
Tawana in April announced a merger with Singapore-listed Alliance Mineral Assets to create a midtier lithium producer with a market cap of A$446-million. Under the terms of the merger agreement, Alliance will acquire all the issued shares of Tawana for 1.10 Alliance shares for every Tawana share held.
Tawana shareholders will vote on the merger in August.