PERTH (miningweekly.com) – Lithium developer Tawana Resources will raise A$20-million through the placement of more than 48.78-million new shares, at a price of 41c each.
The share placement followed Tawana’s announcement of a merger of equals with joint venture partner Alliance Mineral Assets, to create a midtier lithium producer.
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 was also hoping to place up to a further A$5-million in gross proceeds to sophisticated and institutional investors. This placement was conditional on the completion of Alliance’s own capital raise.
“We are extremely pleased with the strong support for this capital raising, particularly from some existing domestic institutional shareholders and new Australian and international institutions who have joined the register,” said Tawana MD Mark Calderwood.
“The additional capital gives us the flexibility to ramp up operations as we rapidly progress towards the full productive potential of the mine.”
The funds raised under both the placements will be used for additional working capital, the continued commissioning of the Bald Hill lithium and tantalum mine, resource drilling, as well as for capital expenditure projects like feasibility studies on expansion projects, and other initiatives at the Bald Hill mine.
Both the share placements will be conducted under Tawana’s existing placement capacity, and will not require shareholder approval.