PERTH (miningweekly.com) – Lithium developer Tawana Resources on Friday told shareholders that the company was fully funded to start production in the first quarter of 2018 from its Bald Hill project, in Western Australia, after securing A$25-million in funding.
The funding package comprises a A$20-million share placement to Germany’s Weier Antriebe und Energietechnik, which is a subsidiary of lithium specialist Jiangte Special Electric Motor, as well as a A$5-million loan.
Weier will be issued an initial 14.2-million shares, at a price of 35c each, by October 25, and a further 42.8-million share, at the same issue price, by November 15, giving the company an 11.5% stake in Tawana.
The share placement will be conducted under Tawana’s existing placement capacity and will not require shareholder approval.
The A$5-million finance facility will have an 11% a year interest rate, payable quarterly in arrears, and a maturity date of December 2019.
“We are very pleased to complete the funding for our share of the development and construction costs of the Bald Hill lithium mine,” said Tawana MD Mark Calderwood.
“We are exceptionally placed to benefit from the favourable long-term demand dynamics for the lithium sector based on electric vehicles. The raw materials required for lithium-ion and other next generation batteries have become a critical focus for the global automotive sector, who wish to secure these materials from high quality, clean, reliable and low-risk supply chains.”
Tawana and its partner Alliance Mineral Assets are developing the A$42.2-million Bald Hill project, which is expected to deliver 155 000 t/y of spodumene concentrate and 260 000 lb/y of tantalum pentoxide over a mine life of 3.6 years.