27/09/2018 - 15:29

Tawana secures $40m funding deal

27/09/2018 - 15:29

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Lithium producer Tawana Resources has secured a $40 million funding package with a consortium led by Tribeca Investment Partners, with its planned merger with joint venture partner Alliance Mineral Assets expected to be completed in November.

Tawana secures $40m funding deal
Lithium production began at Bald Hill this year.

Lithium producer Tawana Resources has secured a $40 million funding package with a consortium led by Tribeca Investment Partners, with its planned merger with joint venture partner Alliance Mineral Assets expected to be completed in November.

Tawana said the funding comprised a $20 million debt facility for upgrades to its processing plant at the Bald Hill mine, along with a $20 million line of credit to meet conditions of the merger.

About $5 million of the debt facility will be used to repay a loan to German company Red Coast Investment.

Sydney-based Tribeca is a boutique fund manager with over $2.5 billion funds under management.

Tawana managing director Mark Calderwood said the deal paves the way for the merger and listing of the new entity on the ASX.

“Tawana and Alliance have always remained committed to an ASX listing of the merged group and the conditional mergeco facility will increase balance sheet liquidity as we ramp up lithium production and advance optimisation of the mine and the processing facilities,” he said.

“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.”

Shares in Tawana jumped 20 per cent to 30 cents each today, but were trading as high as 56 cents per share in January.

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