Tawana Resources have obtained a $40 million financial backing agreement which is required to maintain its future on the Australian Stock Exchange following a potential merger with Alliance Mineral Assets. The deal was led by Tribeca Investment Partners, who states that the cash injection would be used to satisfy ASX requirements for the merger.
Tawana and Alliance Mineral Assets are currently 50-50 joint venture partners in the Bald Hill lithium mine in Western Australia, with plans of to officially merge the two companies made public earlier this year.
Mark Calderwood – Managing Director of Tawana said the pair of companies welcomed the conditional finance facility, which would strengthen the joint company’s balance sheet as they moved towards the optimisation of their mine and processing facility.
Mr Calderwood also said “We also believe it paves the way towards an expeditious listing of Alliance on the ASX,”
“We have received exceptional support from Tribeca Investment Partners and other investors which is a great endorsement of the Bald Hill lithium and tantalum mine.”
Tawana plan to use their surplus cash to fund proposed circuit additions that will increase their plant’s throughput by more than half, increasing tonnage to 7200 tonnes per day.
Haydn Smith from Tribeca Investment partners believes the Bald Hill asset is unique and well positioned when compared to other hard spodumene deposits.
“The project has the lowest capital intensity in the sector and produces a coarse product anomalously low in magnesium, iron, mica and other deleterious materials, making it highly sought after by lithium converters,” Smith said.
“We believe that Bald Hill spodumene will ultimately command its own pricing mechanism, much like high grade iron ore or high energy thermal coal.”