11/07/2016 - 13:52

Lithium buy boosts Tawana

11/07/2016 - 13:52

Bookmark

Save articles for future reference.

Shares in Tawana Resources were up 84 per cent today as the company moved focus from iron ore to lithium, while three more Western Australian companies announced new moves in the lithium sector as keen market interest in the metal continues.

Western Australia is one of the world's most significant lithium producers, largely from the Greenbushes mine.

Shares in Tawana Resources were up 84 per cent today as the company moved focus from iron ore to lithium, while three more Western Australian companies announced new moves in the lithium sector as keen market interest in the metal continues.

Tawana gained exposure for a series of potential lithium tenements in the Goldfields through the acquisition of private company Mount Belches.

Those tenements are largely in two zones – near Coolgardie and Kambalda.

In exchange, the owners of Mount Belches will receive 40 million Tawana shares, a stake of about 21 per cent in the company.

Additionally, Tawana has received commitments for a $1.75 million placement, and former Perseus Mining managing director Mark Calderwood has been appointed chief executive.

Mr Calderwood had been the sole director of Mount Belches, while Tawana had previously focused on the Mofe Creek iron project in Liberia.

Tawana chairman Michael Bohm said the company had secured an experienced chief executive in Mr Calderwood.

“(Mr Calderwood) has significant corporate experience in the international resources arena and the technical experience to oversee and advance this highly prospective project,” he said.

Two local companies also scored a lithium deal today, with the Lithium Australia and Cazaly Resources venture Goldfields Lithium Alliance buying rights to lithium minerals in an area near Coolgardie.

The venture has commenced fieldwork and will be working to determine the extent of mineralisation.

Commercialisation for Neometals

Meanwhile, Mt Marion lithium project proponent Neometals unveiled a feasibility study backing the economic viability of its planned concentration process.

The study on the planned lithium processing plant suggested an internal rate of return of 51 per cent and a capital cost of $US158 million, with a 20-year production life.

About 20,000 tonnes of lithium carbonate equivalent would be produced in this time, the study found.

Neometals managing director Chris Reed said it would be a step towards commercialising the process, known as ELi.

“The next step in the project’s development plan is to complete an integrated pilot plant test program using run‐of‐mine concentrates from Mt Marion before we commit to the detailed design and construction of a full scale plant,” he said.

“In parallel we will commence a formal partner selection process to commercialise this globally significant project.”

Mt Marion mine developer Mineral Resources has a 30 per cent stake in Reed Advanced Materials, which is developing the process, while Neometals holds 70 per cent.

Minres holds 43.1 per cent of the mine, Chinese processor Ganfeng holds 43.1 per cent and Neometals the remaining 13.8 per cent.

Shares in Neometals were down 5.5 per cent to 43 cents each at the time of writing.

Tawana shares changed hands at 5.7 cents at the time of writing,  while Cazaly shares fell 7.5 per cent to 7.4 cents each.

Lithium Australia was up 9.1 per cent to with shares at 30 cents each.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options