Tawana Resources has announced a binding agreement with German lithium company Weier, a subsidiary of China’s Jiangte Special Electric Motor Co (JSMC).
The binding $5 million loan, executed by Tawana subsidiary Lithco and arranged by investment group Red Coast, will be used towards Tawana’s $25 million funding package for development at the Bald Hill lithium-tantalum mine in Western Australia, in which the company holds a 50 per cent interest (the other half is owned by Alliance Mineral Assets).
The ambitious mine comprises of eight prospecting licences, 12 exploration licences, four mining leases and one application, as well as a774-square-kilometre general purpose lease.
Under the conditions of the loan, repayment must be completed by December 31, 2019 with no penalty for early repayment.
First delivery of lithium concentrate from Bald Hill mine is anticipated to take place by April. Mark Calderwood, managing director of Tawana was positive about the deal:
“We are pleased with the favourable loan terms and we value the continued support from Weier as we advance towards lithium concentrate production this quarter.”