Tawana Resources has finished its last day of trading as the long-planned merger with Alliance Mineral Assets came into effect.
Singapore-based Alliance, which first announced its intent to acquire 100 per cent of Tawana’s shares in April, plans to simplify the ownership structure at the Bald Hill lithium-tantalum project in the Eastern Goldfields, Western Australia with the merger.
Commercial production commenced at Bald Hill as a 50-50 joint venture between Tawana and Alliance in July.
Tawana applied for its shares to be suspended on the Australian Securities Exchange (ASX) and Johannesburg Stock Exchange (JSE) yesterday, and has now start trading as part of Alliance under the ASX code A40 on a deferred settlement basis.
The company expects to trade on a normal settlement basis from December 17.
Tawana also announced yesterday that it expects a class ruling to be released by the Australian Tax Office on or around December 12 in relation to its planned demerger of Cowan Lithium project, which is adjacent to Bald Hill and hosts three assets (Cowan, Yallari and Mofe Creek).
Tawana demerged 85 per cent of Cowan Lithium in July so that it could concentrate on its operations at Bald Hill as a new merged entity with Alliance.
The Bald Hill project has a mineral resources of 26.5 million tonnes at 0.96 per cent lithium and 149 parts per million of tantalum at a 0.5 per cent cut off. This translates to around 225,200 tonnes of lithium and 8.6 million lbs of tantalum.