JOHANNESBURG-listed Tawana Resources, which mines and explores lithium and iron ore prospects in Australia and Liberia, said it would spin out its exploration properties into a company that it may list separately at a later time. This was in order to focus on Bald Hill, a lithium-bearing property from which it began operations earlier this month.
“Following the recent commissioning and first spodumene concentrate production at Bald Hill, 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,” said Mark Calderwood, MD of Tawana Resources.
Lithium is used in the manufacture of battery-powered vehicles.
As a result, Tawana acknowledged that its other properties – the 100%-owned Yallari Lithium Project and Cowan Lithium Project in Western Australia, and the 100%-owned Mofe Creek Iron Ore Project in Liberia – would not receive the focus of management that they warranted, said Calderwood.
Tawana said it would keep a 15% stake in the spun out company, called SpinCo, and would continue to provide some services to the entity. A shareholder meeting had been targeted for May with implementation of the transaction in June.
