Tawana raises $15m

Aspiring lithium miner Tawana Resources has raised $15 million from investors to fund ongoing development of its Bald Hill project in the Goldfields, a day after signing a $25 million offtake deal for the operation.

Perth-based Tawana raised the funds through the placement of 60 million shares at 25 cents each, representing a 3.2 per cent discount to the company’s 10-day volume-weighted average price.

The proceeds will be used to fund ongoing development work at Bald Hill, which Tawana is earning a 50 per cent stake in through a farm-in agreement with project owner Alliance Mineral Assets.

The operation is expected to be commissioned by the end of the year, with Tawana yesterday signing a $25 million offtake deal with Hong Kong-listed Burwill Holdings for the supply of lithium concentrate from the first quarter of next year.

Tawana’s share of the deal is $12.5 million.

“We are extremely pleased with the level of support from the placement, particularly from some existing domestic institutional shareholders and new Australian and international institutions who have joined the register,” Tawana managing director Mark Calderwood said.

“These funds, in conjunction with the offtake prepayment, give us the funding required for the capital component of the dense media separation plant as we rapidly progress towards spodumene production.”

Canaccord Genuity acted as lead manager to the placement.

Tawana shifted its focus from iron ore to lithium last year after acquiring private company Mount Belches.

Tawana shares were 5.5 per cent lower to 25.5 cents each at 10:45am.