Tawana Resources plans to restructure three of its assets into a new company in order to focus on its flagship 50 per cent-owned Bald Hill lithium-tantalum project in Eastern Goldfields, Western Australia, which started spodumene concentrate production earlier this month.
The other half of Bald Hill is owned by joint venture partner Alliance Mineral Assets.
The Cowan lithium project, Yallari lithium project and Mofe Creek iron ore project (all 100 per cent-owned by Tawana) will be spunoff into a new company called SpinCo, with 85 per cent of SpinCo’s shares to go to Tawana shareholders via capital reduction and in-specie distribution. There are no present plans to list SpinCo on the ASX, however.
Tawana Resources managing director Mark Calderwood said that focusing on the Bald Hill project — which has seen less than 5 per cent of its prospective area explored so far — would drive growth at the company.
“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,” he said.
“Accordingly, the board of Tawana has acknowledged that the assets are unlikely to garner the appropriate management focus and budgetary allocation which they warrant and require for short-term advancement.”