Tawana Resources’ shareholders have agreed to proceed with the merger with Alliance Mineral Assets despite fears that the enlarged company might not be able to trade on the ASX.
The lithium producer has since secured funding from Tribeca Investment Partners to ensure the merged company’s future listing.
Plans to merge with Tawana’s Singapore-listed Bald Hill lithium project joint venture partner were revealed in April this year.
The consolidation was aimed to simplify Bald Hill’s ownership structure and operational management.
The JV partners believe a merged company will make it well-placed to meet a high demand in lithium concentrate.
Tawana managing director Mark Calderwood said, “We are extremely pleased that shareholders have voted overwhelmingly in favour of the merger, endorsing the board’s view that the merger represents an outstanding opportunity to elevate the merged group’s profile and to take the Bald Hill mine through its next phase of growth.
“We look forward to progressing our strategy to become a long-term and sizeable producer of quality lithium concentrate underpinned by a resource with significant growth potential.”
Tawana expects to receive the federal court’s approval on December 3 and be de-listed from the ASX the following day. Its shareholders will receive 1.1 Alliance shares for every one Tawana share held.
Bald Hill is 50 kilometres south east of Kambalda in the Eastern Goldfields region of Western Australia. The project secured a long-term offtake agreement for its high-grade tantalum concentrate in October this year.