Tawana plans non-core spinoff

The Australian Mining Review - - NEWS: EXPLORERS ON THE MOVE - CAMERON DRUM­MOND

“Tawana recog­nises that the value of the Cowan, Yal­lari and Mofe Creek projects may be bet­ter recog­nised by the mar­ket by de­merg­ing these as­sets from Tawana.”

LITHIUM pro­ducer Tawana Re­sources will spin out three non-core as­sets to fo­cus ef­forts on its flag­ship Bald Hill lithium project.

The re­struc­ture in­volves the trans­fer of the Cowan and Yal­lari lithium projects in the East­ern Gold­fields, as well as the Mofe Creek iron ore project in Liberia, into a wholly-owned pub­lic com­pany ‘SpinCo’, be­fore un­der­tak­ing a cap­i­tal re­duc­tion and dis­tri­bu­tion of 85 per cent of all SpinCo shares to Tawana’s share­hold­ers.

The new com­pany would not ini­tially seek an ASX list­ing, but this would be con­sid­ered by the SpinCo board in due course, Tawana stated.

“Fol­low­ing the re­cent com­mis­sion­ing and first spo­dumene con­cen­trate pro­duc­tion at Bald Hill, Tawana’s pri­mary fo­cus is to en­sure ef­fec­tive ramp-up of pro­duc­tion and to en­sure ex­plo­ration ac­tiv­i­ties are fo­cused ‘near mine’ to drive growth in mine­able re­serves and ex­tend as­so­ci­ated mine life at Bald Hill, of which the com­pany has ex­plored less than 5 per cent of the known prospec­tive area,” Tawana man­ag­ing di­rec­tor Mark Calder­wood said.

“Fur­ther­more, the board of Tawana recog­nises that the value of the Cowan, Yal­lari and Mofe Creek projects may be bet­ter recog­nised by the mar­ket by de­merg­ing these as­sets from Tawana to form a new stand­alone ex­plo­ration com­pany.

“Fol­low­ing the pro­posed trans­ac­tion, both com­pa­nies, Tawana and SpinCo, will be bet­ter placed to ad­vance their re­spec­tive as­set port­fo­lios, which are at dif­fer­ent stages of ma­tu­rity. “De­merg­ing the prospec­tive as­sets should un­lock bet­ter value for SpinCo share­hold­ers.”

Im­age: Tawana Re­sources.

Tawana said the spin out would un­lock bet­ter as­set value for SpinCo share­hold­ers.

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