Tawana in $25m funding deal

Lithium explorer Tawana Resources has attracted a $25 million funding package with one of its offtake partners, as it works towards first production at its Bald Hill project in the Goldfields by early next year.

Perth-based Tawana announced today that German company Weier Antriebe and Energietechnik, a subsidiary of Chinese company Jiangte Special Electric Motor and a joint venture offtake partner with Burwill Commodity for Bald Hill product, had agreed to make a $20 million equity investment in Tawana.

The investment was made by way of the placement of shares at 35 cents each, representing a 5.4 per cent premium to Tawana’s 10-day volume-weighted average price.

Weier has also agreed to provide Tawana with a $5 million loan, as part of the funding package that will fully fund the company towards first production at Bald Hill, slated for the first quarter of 2018.

“We are exceptionally placed to benefit from the favourable long-term demand dynamics for the lithium sector based on electric vehicles,” Tawana managing director Mark Calderwood said.

“The raw materials required for Li-ion (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.

“We are delighted by the ongoing support of our offtake partner Burwill and the involvement of an established, profitable electric motor company of Weier’s calibre.

“The backing from Burwill and Weier is a very strong endorsement of the potential at Bald Hill.”

Shares in Tawana were 6.9 per cent higher to 38.5 cents each at 12:40pm.