Tawana raises R49m through new shares

JSE-LISTED mining company Tawana Resources successfully raised A$4.88 million (R48.7m) through a placement of more than 12 million new fully paid ordinary shares to an institutional investor in the company at an issue price of A$0.40 a share.

The group said on Friday that the shares under the placement would be issued under Tawana’s existing Australian Stock Exchange listing rule 7.1 placement capacity.

Tawana has a primary listing in Australia and a secondary listing on the JSE.

The funds raised under the placement will primarily be used for additional working capital and other initiatives at the Bald Hill Mine, according to Tawana. Bald Hill Mine, based in Western Australia, is 50-50 owned by Tawana and Singapore-listed Alliance Mineral Assets.

In March Tawana and Alliance announced the commencement of lithium production at the mine, following ore commissioning of the newly constructed Dense Media Separation circuit.

Bald Hill Mine produces spodumene, a type of lithium concentrate that is in hot demand to be processed into lithium carbonate or hydroxide for use in rechargeable batteries that power mobile phones and electric cars.

Tawana said due to prevailing market conditions, the placement had been done in substitution of the conditional placement previously announced on April 5.

“However, the company is pleased to advise that the number of shares issued is the same as, and the net proceeds are not less than, what was contemplated pursuant to the conditional placement,” the group said.

The group said the placement was settled last Friday and the new shares were also allotted on the same day.

It is not the first time that Tawana has raised capital through a share placement this year.

In April the group also raised A$20m in a share placement to pay for the commissioning of its Bald Hill lithium and tantalum mine in Australia, as well as for exploration and general corporate expenses.

Its managing director Mark Calderwood said then that the capital raised gave the company the flexibility to ramp up operations as they rapidly progress towards the full productive potential of the Bald Hill mine.

Tawana Resources shares closed flat on the JSE on Friday at R3.70.