Australian lithium producer Tawana has secured a crucial funding package and merger with with Singapore’s Alliance Mineral Assets to secure its future as an Australian-listed company.
|Bald Hill DMS Circuit|
The AU$40 million funding package comprises a binding term sheet with Tribeca Investment Partners and a consortium of lenders.
Half of the funding package will be utilised to satisfy the ASX Emphasis of Matter Requirement following the completion of the merger, which was announced in April of this year.
The companies are 50-50 joint venture partners at the Bald Hill lithium mine near Kambalda in Western Australia.
The Tawana Facility will fund the proposed fines lithium and tantalum circuit additions to the existing Dense Media Separation plant (DMS), for which metallurgy and engineering studies are nearing completion. The additions are expected to increase the nominal throughput rate from the current 200tph to 300tph and increase recovery rates.
Tawana Managing Director Mark Calderwood said that the companies have always remained committed to an ASX listing of the merged group and the conditional merge facility woild increase balance sheet liquidity as they ramped up lithium production and advanced optimisation of the mine and the processing facilities.
“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.”
Having reviewed most hard rock spodumene projects globally, Portfolio Manager of Tribeca’s Global Natural Resources Credit Fund, Haydn Smith believes that Bald Hill is uniquely positioned.
“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. We believe that Bald Hill spodumene will ultimately command its own pricing mechanism, much like high grade iron ore or high energy thermal coal.”