PERTH (miningweekly.com) – Lithium miner Tawana Resources has announced the spin-out of its Cowan and Yallari lithium projects, in Western Australia, and the Mofe Creek iron-ore asset, in Liberia, into a separate entity.
Tawana told shareholders on Thursday that an ASX-listing for the new company would not be initially sought, but would be considered by the board of the new company, in due course.
“Following the recent commissioning and first spodumene concentrate production at Bald Hill, Tawana’s primary focus is to ensure effective ramp-up of production and to ensure exploration activities are focused near-mine to drive growth in mineable reserves and extend associated mine life at Bald Hill, of which the company has explored less than 5% of the known prospective area,” said Tawana MD Mark Calderwood.
He noted that it was for this reason that Tawana’s remaining assets were unlikely to garner the appropriate management focus and budgetary allocation which they warrant and require for short-term advancement.
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.
A shareholders meeting would likely be called in May this year, to allow shareholders to vote on the proposed transaction, with the completion of the spin-out targeted for June.