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Interim Financial Report for the half-year ended 30 June 2017
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
JSE ISIN: AU0000TAWDA9
Share code on the Australian Securities Exchange Limited: TAW
ASX ISIN: AU000000TAW7
(“the Company” or “Tawana”)
INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2017
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO
TAWANA WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
This information should be read in conjunction with the 31 December 2016 Annual Report
13 September 2017
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Contents
Corporate Directory 3
Directors’ Report 4
Auditor’s Independence Declaration 14
General Information 15
Consolidated Statement of Comprehensive Income 16
Consolidated Statement of Financial Position 17
Consolidated Statement of Changes in Equity 18
Consolidated Statement of Cash Flows 20
Notes to the Financial Statements 21
Directors’ Declaration 28
Independent Auditor’s Review Report to the Members 29
Corporate Directory
Directors Solicitors to the Company
Mr Rob Benussi Non-Executive Chairman King & Wood Mallesons
Mr Mark Calderwood Managing Director Level 30, QV1 Building
Mr Michael Naylor Executive Director 250 St Georges Terrace
Mr Robert Vassie Non-Executive Director Perth WA 6000
Mr Mark Turner Non-Executive Director
Share Registry
Company Secretaries
Computershare Investor Services Pty Ltd
Mr Michael Naylor GPO Box 2975
Mr Craig Hasson Melbourne VIC 3001
Principal Place of Business Tel: +61 3 9415 5000
and Registered Office Fax: +61 3 9473 2500
Level 3, 20 Parkland Road Auditor
Osborne Park WA 6017
Ernst & Young
Contact Details The Ernst & Young Building
11 Mounts Bay Road
Website: www.tawana.com.au Perth WA 6000
Tel: +61 8 9489 2600
Stock Exchange
Australian Securities Exchange
ASX Code: TAW
JSE Limited (South Africa)
JSE Code: TAW
Directors’ Report
The Directors present their report on Tawana Resources NL (“the Company”) and its controlled entities
(“Tawana” or “the consolidated entity”) for the half-year ended 30 June 2017.
Directors
The names of the Directors in office at any time during or since the end of the half-year are as follows:
Mr Robert Benussi – Non-Executive Chairman
Mr Mark Calderwood – Managing Director
Mr Michael Naylor – Executive Director
Mr Robert Vassie – Non-Executive Director (Appointed 1 August 2017)
Mr Mark Turner – Non-Executive Director (Appointed 1 August 2017)
All Directors have been in office for this entire period unless otherwise stated.
Operating results
The loss of the consolidated entity for the half-year ended 30 June 2017 after providing for income tax
amounted to $5,077,885 (to 30 June 2016: $561,730).
No dividends were declared or paid during the half-year ended 30 June 2017.
Review of operations
Bald Hill Lithium and Tantalum Mine (TAW 50% of lithium, earning 50% of Project)B
The Bald Hill Lithium and Tantalum Project (“Project”) is located 50km south east of Kambalda in the
Eastern Goldfields. It is located approximately 75km south east of the Mt Marion Lithium project and
is adjacent to the Company’s Cowan Lithium Project. The Project comprises four mining leases, eight
exploration licences, eight prospecting licences and five tenement applications totalling 791.3km 2.
Pre-Feasibility Study1 and A
The Bald Hill Mine is set to become a low-cost producer of quality spodumene (lithium) concentrate in
early 2018 following the results from a Pre-Feasibility Study (PFS) on the Bald Hill Lithium and Tantalum
project (Bald Hill or Project)1 and A. Highlights include:
- Technical and financial viability of a 1.2Mtpa lithium Dense Media Separation circuit (DMS)
adjacent to the existing tantalum processing facility (TPF).
- Forecast average annual production of approximately 155,000tpa of spodumene concentrate and
260,000lb/pa of tantalum pentoxide.
- Lowest capital-cost lithium project in Australia at A$42M (excluding pre-production operating
costs). A$37.5M already committed to the Project with Tawana earn-in ($12.5m) and off-take
contractual pre-payments ($25m).
- Maiden Lithium Ore Reserve of 4.3Mt at 1.18% Li2O and 208ppm Ta2O5 representing
approximately 90% conversion of existing Indicated Resources. Additional tantalum Ore Reserve
of 1.4Mt at 317ppm Ta2O5.
- Ore Reserve underpins “starter pit” life of 3.6 years. Inferred Resources outside the scope of the
PFS are an additional 8.2Mt at 1.14% Li2O.
1 All figures throughout this announcement regarding the Project and the PFS are, unless expressly stated otherwise, presented
on a 100% of Project basis. Tawana, through its 100% owned subsidiary Lithco No. 2 Pty Ltd, has earned a right to 50% of all
lithium minerals from the tenements comprising the Project – refer to announcements of 28 June 2017. Tawana is required to
spend $12.5 million in capital expenditure for upgrading and converting the existing plant on the Bald Hill tenements for
processing ore derived from the Project, infrastructure costs, pre-stripping activities and other expenditures including operating
costs by 31 December 2019. Upon completion of such capital expenditure commitment, Tawana (through Lithco No.2 Pty Ltd)
will be entitled to a 50% interest in the Project comprising the Bald Hill tenements, the processing plant and infrastructure at
Bald Hill, and all minerals from the Bald Hill tenements under the terms of the Bald Hill Joint Venture Agreement (which will
only take effect upon satisfaction of the capital expenditure obligation). Refer to announcements of 24 February 2017.
Directors’ Report
Maiden Lithium ResourceD and ReservesC
Tawana commissioned CSA Global Pty Ltd (CSA Global) to compile a maiden lithium Mineral Resource
estimate for the Bald Hill Project and update the tantalum Resource and announced a Maiden Indicated
and Inferred lithium Mineral Resource of:
- 12.8 million tonnes at 1.18% Li2O and 158ppm Ta205 at a 0.5% Li20 cut-off (high grade).
High grade tantalum Resources increased 250% to 8.9 million tonnes at 304ppm Ta 2O5 containing 6
million pounds of tantalum pentoxide, including 5.7 million tonnes at 311ppm Ta 2O5 not included in the
+0.5% Li2O lithium resource.
Approximately 80% of the lithium and tantalum resources above 0.5% Li20 occurs in a 100m deep
interval commencing from about 30m below the lowest surface level.
The Maiden Resource covers only 20% of the known southern swarm of lithium pegmatites. Ongoing
drilling continues to expand the resource footprint.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite body,
striking north-south, with a strike length of 1,070 metres, and a width at its widest point of 775 metres.
This main body is surrounded by several smaller discrete pegmatite bodies, sub-parallel to the main,
which result in a total strike length for the whole resource of 1,245 metres, and a total width of 990
metres. The Mineral Resource has a total vertical depth of 195 metres, beginning 20 metres below the
natural surface and plunging gently to the south along its entire strike length.
The Mineral Resource was classified as Indicated and Inferred in accordance with the JORC Code,
2012 Edition on a qualitative basis; taking into consideration numerous factors including drillhole
spacing, estimation quality statistics (kriging slope of regression), number of informing samples,
average distance to informing samples in comparison to the semivariogram model ranges, and overall
coherence and continuity of the modelled mineralisation wireframes.
Directors’ Report
Table 1 | Bald Hill Project, Resources above 0.5% Li2O cut-off
Grade Contained Grade Contained
Resource Tonnes
Li2O Li2O Ta2O5 Ta205
Category (Mt)
% Tonnes ppm (,000) Lbs
Indicated 4.6 1.25 57,100 207 2,200
Inferred 8.2 1.14 94,300 130 2,500
Total 12.8 1.18 151,400 158 4,700
Table 2 | Bald Hill Project, Resources above 0.5% Li2O and 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 1.9 1.26 23,700 312 1,300
Inferred 1.4 1.10 15,000 291 900
Total 3.3 1.19 38,700 303 2,200
Note
1) The tantalum resources form part of the lithium/tantalum resources reported in Table 1.
Table 3 | Bald Hill Project, Resources below 0.5% Li2O and above 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained
Category (Mt) Ta2O5 Ta205
ppm (,000) Lbs
Indicated 2.8 325 2,000
Inferred 2.9 297 1,900
Total 5.7 311 3,900
Note
1) The tantalum resources reported in Table 3 are additional to those reported in Table 1 and 2.
In July 2017, the Company also announced its maiden lithium Reserve. Refer Tables 4 and 5.
Table 4: Bald Hill Project, Reserves above 0.39% Li2O
Reserve Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Proven - - - - -
Probable 4.3 1.18 50,800 208 2,000
Total 4.3 1.18 50,800 208 2,000
Note
1) Allows for mining ore loss of 5% and dilution of 5%
Table 5: Bald Hill Project, Reserves below 0.39% Li2O and above 200ppm Ta2O5 cut-offs
Reserve Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Proven - - - - -
Probable 1.4 0.21 3,000 317 1,000
Total 1.4 0.21 3,000 317 1,000
Notes
1) Allows for mining ore loss of 5% and dilution of 5%
2) Reserves contained in Table 5 are additional to those reported in Table 4.
Directors’ Report
Early works
Tawana commenced early works, including the ordering of long lead capital items for the development
of Bald Hill.
Work on critical path items also commenced to ensure that appropriate infrastructure, permits, access
and logistics support are also in place.
In addition, Tawana has conducted site clearing on existing disturbed areas ready for construction and
early operations, including mobilisation of key construction personnel to site.
The Company secured the use of the 150-room Lanfranchi camp from Panoramic Resources Limited
under a six-month rental agreement to 1 December 2017 with a further six-month option, to house the
construction team during commissioning.
The camp is 40km from the Bald Hill Mine and significantly reduces the Company’s upfront capital costs.
The Company will assess the merits of expanding the 40-room camp at Bald Hill after production has
commenced.
Engineering, Procurement and Construction Contract
In August 2017, Tawana and its joint venture partner Alliance Mineral Assets Limited (AMAL) executed
an Engineering, Procurement and Construction (EPC) contract with Primero Group to build a 1.2 million
tonne per annum Dense Media Separation (DMS) circuit at the Bald Hill Lithium and Tantalum Mine.
The EPC contract is a “lump sum, fixed price” contract valued at A$30 million. A further A$2 million was
committed to a lithium fines circuit to increase process water and tantalum recovery. Primero was chosen
for their expertise in lithium projects, having recently commissioned a DMS lithium plant in Western
Australia and their involvement in several significant lithium projects globally.
Metallurgical Testwork
Following on from the excellent results obtained from the variability test work (refer ASX announcement
on 13 February 2017), larger scale tests were done on a 160kg composite of core used in the variability
tests (refer ASX release 7 April 2017).
The results highlighted two key characteristics of the Bald Hill mineralisation:
- The ability to produce grades in excess of 6% Li2O at good mass yields with acceptably low iron
content.
- The ability to reject 60-70% of the feed mass after a first pass DMS.
Exploration
Drilling aimed at extending the zone of mineralisation at Bald Hill was successful, trebling the size of
the target area originally defined in January 2017. The extended area contained the most significant
lithium results to date.
Significant results from the eastern high-grade extension included (refer ASX Announcement dated 25
May 2017)E:
- 57m at 1.62% Li2O from 161m, including 47m at 1.77% Li2O in LRC0348;
- 38m at 1.48% Li2O from 134m in LRC0456;
- 28m at 1.49% Li2O from 129m including 25m at 1.63% Li2O in LRC0454;
- 10m at 2.58% Li2O from 83m including 7m at 3.46% Li2O in LRC0347;
This mineralised zone remains open to the east and south.
Significant results from the south-western extension included:
- 24m at 1.29% Li2O and 239ppm Ta2O5 from 135m in LRC0405;
- 7m at 1.33% Li2O from 107m and 15m at 1.42% Li2O from 155m in LRC0407;
- 12m at 1.31% Li2O and 306ppm Ta2O5 from 126m in LRC0411;
- 6m at 1.75% Li2O and 448ppm Ta2O5 from 99m and 10m at 1.28% from 137m in LRC0425;
Directors’ Report
- 14m at 1.52% Li2O and 268ppm Ta2O5 from 106m and 15m at 0.73% Li2O and 402ppm Ta2O5
from 141m in LRC0426;
- 12m at 0.96% Li2O and 325ppm Ta2O5 from 113m and 10m at 1.76% Li2O and 338ppm Ta2O5
from 164m in LRC0427;
- 15m at 1.21% Li2O from 113m, 4m at 1.86% from 144m and 8m at 0.81% Li 2O and 322ppm
Ta2O5 from 159m in LRC0404.
This mineralised zone remains open to the west and south.
Other significant results included (Refer ASX Announcement dated 19 April 2017) E:
- 35m at 1.35% Li2O from 71m, including 10m at 1.62% Li2O, 6m at 1.61% Li2O and 6m at 1.75%
Li2O in LRC0247;
- 28m at 1.34% Li2O and 343ppm Ta2O5 from 92m including 12m at 2.06% Li2O and 464ppm Ta2O5
in LRC0226;
- 12m at 1.16% Li2O from 95m and 11m at 1.96% Li2O from 131m including 5m at 3.14% Li2O in
LRC0237 (also see tantalum intercepts below)
- 26m at 1.13% Li2O and 309ppm Ta2O5 from 17m including 5m at 1.99% Li2O in LRC0187; and
- 12m at 1.64% Li2O and 219ppm Ta2O5 from 85m in LRC0229.
Significant tantalum pentoxide intercepts included:
- 4m at 14,782ppm (14.78kg/t) Ta2O5 and 9,974ppm Nb2O5 from 78m in LRC0237;
- 8m at 2,468ppm Ta2O5 from 27m including 2m 7,022ppm (7.02kg/t) Ta2O5 and 0.82% Li2O in LRC0317;
- 4m at 1,246ppm Ta2O5 from 47m including 1m at 4,211ppm Ta2O5 in LRC0318;
- 11m at 729ppm Ta2O5 and 1.72% Li2O from 134m in LRC0222; and
- 6m at 976ppm Ta2O5 and 1.63% Li2O from 154m in LRC0224.
Cowan Lithium Project (TAW 100%)
The Cowan Lithium Project is located 50km south-east of Kambalda in the Goldfields region of Western
Australia, approximately 75km south-east of the Mt Marion lithium project and comprises three
tenements totalling 159km2. The tenements are adjacent and surrounded by the Bald Hill Mine (Tawana
earning 50%), at which the Company is expected to commence lithium production in 2018. The Cowan
Project contains many LCT pegmatites some of which are proven to contain significant spodumene.
In March 2017, Tawana exercised its option to acquire 100% of the four tenements which comprise the
Cowan Lithium Project, all which are highly prospective for lithium. The Company paid the vendors of
the Cowan and Yallari Lithium Projects (refer ASX announcement 27 March 2017) $1,000,000 in cash
and $1,000,000 in Tawana shares (50% escrowed for 12 months).
Yallari Project (TAW 100%)
Tawana exercised its option (refer above) to acquire the Yallari project located 6km west of the Mt
Marion lithium mine (75km northwest of the Cowan Project). The tenement contains numerous
pegmatites in the same host-rock sequence as Mt Marion and located close to the Depot Hill
granodiorite.
No exploration for lithium has been undertaken to date, however the project is considered highly
prospective.
Mofe Creek Iron Ore Project (TAW 100%)
Tawana’s 100% owned Mofe Creek Project (“the Project”) is in the heart of Liberia’s historic iron ore
district, located 20km from the coast and 80km from the country’s capital city and major port, Monrovia.
The Company is continuing with the negotiation Tawana’s Mineral Development Agreement (“MDA”)
with the Government of the Republic of Liberia.
The MDA is an agreement outlining the technical, commercial and social/environmental commitments
to be undertaken to build, operate and sustain a project within Liberia, and is a legislative document
passed as a bill in parliament for a term of 25 years.
Directors’ Report
Corporate
Lithium Joint Venture Earn In
In May 2017, Tawana spent the required $7,500,000 to earn a 50% interest in all lithium rights at the
Bald Hill Mine tenements. Accordingly, the Bald Hill Lithium Rights Joint Venture Agreement (Lithium
Rights JVA) entered into on 10 April 2017 over the lithium rights at the Bald Hill tenements, came into
effect on 31 May 2017 as determined by an independent auditor on 23 June 2017.
Bald Hill Lithium Rights Joint Venture Agreement
In April 2017, Lithco no. 2 Pty Ltd, a 100% owned subsidiary of Tawana Resources NL, and AMAL
finalised the Bald Hill Lithium Rights Joint Venture Agreement with respect to the Bald Hill Lithium and
Tantalum Project in Western Australia for the purpose of joint exploration and exploitation of lithium.
Lithium Concentrate Offtake Agreement
In April 2017, the Company signed a binding long-term exclusive lithium concentrate offtake agreement
(Agreement) with a 100% owned subsidiary of Burwill Holdings Ltd (Burwill), a company listed on the
main Board of The Stock Exchange of Hong Kong Limited (stock code 0024).
The Agreement is for the supply of lithium concentrate from the Bald Hill Project in Western Australia
over an approximate initial five year term.
Directors’ Report
Tawana and AMAL have sold their 2018 and 2019 lithium ore concentrate that comes from the planned
Bald Hill Lithium and Tantalum Project. The key terms of the offtake are as follows:
• A fixed price for all production for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O
with price adjustment increment/decrement of US$/15t based on grade variation of 0.1%.
The minimum accepted grade is 5.5%.
• From 2020 to 2023, the sales price and volumes are to be negotiated and will be agreed
based upon prevailing market conditions at the time.
• The parties may extend the agreement beyond 31 December 2022 each year provided a
price and quantity can be agreed by both parties.
A condition precedent to the offtake agreement is that Tawana must have earned its 50% interest in the
Bald Hill Project as outlined in the Farm-in Agreement between Lithco No 2 Pty Ltd and AMAL.
Prepayment
Burwill also agreed to advance Tawana and AMAL a combined amount of A$25,000,000 in total
(“Advance Payment Amount”) in the amounts and on the dates set below:
• A$3,750,000 (to each Tawana and AMAL) was received on signing the Agreement;
• On 15 July 2017, A$4,375,000 to each of Tawana and AMAL (this has also been received);
and
• On 15 September 2017, A$4,375,000 to each of Tawana and AMAL.
The Advance Payments shall be used for the development and operational costs of the Bald Hill Project.
No interest is payable in respect of the Advance Payment Amount. The Parties shall repay the
outstanding Advance Payment Amount through 20% of the value of each shipment of lithium
concentrate until such time as Burwill has been reimbursed in full for the aggregate amount of the
Advance Payments.
Capital Raising
In April, the Company raised A$15 million (before costs) via the issue of 60 million new fully paid
ordinary shares at an issue price of A$0.25 per share. The shares were issued on 8 May 2017.
Prepayment to Primero Group
In May 2017, Tawana made a prepayment of $3,038,180 (exclusive of GST) to Primero Group for the
early works program.
Change of Company Secretary
Craig Hasson was appointed as Joint Company Secretary of the Company effective 24 May 2017. He
was appointed the Commercial Manager of the Company in March 2017. Craig Hasson is a Chartered
Accountant with over 15 years of accounting and finance experience with a number of ASX listed
companies in company secretary and senior finance roles.
Melanie Li has resigned as Joint Company Secretary and remains as Financial Controller of the
Company.
Options
During the half year ended 30 June 2017, 16,375,000 options were issued to employees, directors,
consultants and advisors.
Directors’ Report
Events occurring after the reporting period
Disposal of Lithium Africa no. 1 Pty Ltd (LA1)
On 5 July 2017, Tawana and the former shareholders of Lithium Africa no. 1 Pty Ltd signed an
agreement whereby Tawana sold the holding company that held the rights to the Uis stockpiles back to
the original vendors for $1.
Operating Lease
As from 1 July 2017, Tawana Resources NL’s principal place of business and registered address was
changed to Level 3, 20 Parkland Road, Osborne Park WA 6017. The lease for the office is for a 3-year
term, with an option to extend for a further 2 years.
Offtake Prepayment
On 17 July 2017, Tawana Resources NL received a second payment of $4,375,000, which forms part
of the lithium concentrate offtake agreement from a subsidiary of Burwill Holdings Ltd, a company listed
on the main Board of The Stock Exchange of Hong Kong Limited, which was signed in April 2017.
Appointment of Non-Executive Directors
Robert Vassie and Mark Turner were appointed Non-Executive Directors of the Company effective 1
August 2017.
Robert (Bob) Vassie is a Mining Engineer with 30 years’ international mining industry experience and
18 years’ experience in a range of senior management roles with Rio Tinto. He is currently the Managing
Director & CEO of St Barbara Limited and has particular experience in operations management,
resource development strategy, mine planning, feasibility studies, business improvement, corporate
restructuring and strategic procurement.
Mark Turner is a Mining Engineer with more than 30 years of experience in the resources sector. He
has been responsible for the start-up and operation of mines in Australia, Africa and Asia. He was
previously General Manager Operations of Resolute Mining Ltd, one of Australia’s largest gold
producers and Chief Operating Officer (“COO”) of CGA Mining, before its takeover by B2 Gold for C$1.1
billion in 2010. He is currently the Chief Operating Officer of RTG Mining Inc.
Execution of Engineering, Procurement and Construction (EPC) agreement
The Engineering, Procurement and Construction (EPC) contract was executed with Primero Group,
enabling construction to commence at the 1.2 million tonne per annum Dense Media Separation circuit
at the Bald Hill Lithium and Tantalum Mine in August 2017.
Issue of Options
The Company issued 750,000 options at an exercise price of $0.20, $0.22 and $0.24 per option and an
expiry date of 21 August 2020.
Auditor’s independence declaration
The lead auditor’s independence declaration for the half-year ended 30 June 2017 has been received
and is attached to this Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
Mr Mark Calderwood
Managing Director
Dated this 13 day of September 2017
Notes
Directors’ Report
A: All figures throughout this announcement regarding the Project and the PFS are, unless expressly stated otherwise, presented on a 100%
of Project basis. Tawana, through its 100% owned subsidiary Lithco No. 2 Pty Ltd, has earned a right to 50% of all lithium minerals from the
tenements comprising the Project – refer to announcements of 28 June 2017. Tawana is required to spend $12.5 million in capital
expenditure for upgrading and converting the existing plant on the Bald Hill tenements for processing ore derived from the Project,
infrastructure costs, pre-stripping activities and other expenditures including operating costs by 31 December 2019. Upon completion of such
capital expenditure commitment, Tawana (through Lithco No.2 Pty Ltd) will be entitled to a 50% interest in the Project comprising the Bald
Hill tenements, the processing plant and infrastructure at Bald Hill, and all minerals from the Bald Hill tenements under the terms of the Bald
Hill Joint Venture Agreement (which will only take effect upon satisfaction of the capital expenditure obligation). Refer to announcements of
24 February 2017.
All material assumptions underpinning the Production Targets detailed in this report (including all financial information derived from those
production targets) are detailed in the ASX announcement dated 11 July 2017 and Tawana confirms those assumptions continue to apply
and have not materially changed.
B: Through Tawana’s 100% owned subsidiary Lithco No. 2 Pty Ltd (Lithco), Tawana entered into a Farm-In Agreement on 23 February 2017
with AMAL with respect to the Bald Hill Project for the purpose of joint exploration and exploitation of lithium and other minerals. In May 2017,
Tawana earned its 50% rights to all lithium minerals from the tenements comprising the Project, and Tawana and AMAL are now governed
by the Lithium Rights Joint Venture Agreement which was entered into on 10 April 2017.
Tawana is required to spend $12.5 million in capital expenditure for upgrading and converting the existing plant on the Bald Hill tenements
for processing ore derived from the Project, infrastructure costs, pre-stripping activities and other expenditures including operating costs
(Capital Expenditure) by 31 December 2019.
Upon completion of the Capital Expenditure, Tawana (through Lithco) will be entitled to a 50% interest in the Project (being all minerals from
the tenements and the processing plant and infrastructure at Bald Hill). The portfolio of mineral tenements, comprising mining leases,
exploration licences, prospecting licences, miscellaneous licences, a general-purpose lease, and a retention lease are in good standing.
AMAL and Lithco entered into the Bald Hill Joint Venture Agreement (“Bald Hill JVA”) on 18 April 2017. The Bald Hill JVA has not come into
effect as at the date of this announcement, but will take effect upon completion of the Capital Expenditure.
C: Refer to how the Ore Reserve estimates were derived in Section 4 of the Company's ASX announcement dated 11 July 2017.
Tawana is not aware of any new information or data that materially affects the information included in said announcement.
D: All material assumptions and technical parameters underpinning the Mineral Resource estimates in the ASX announcement
dated 14 June 2017 continue to apply and have not materially changed since it was last reported.
E: For full details of these Exploration Results refer to ASX announcement. Tawana is not aware of any new information or data
that materially affects the information included in the said announcement.
Competent Persons Statement
The information in this news release that relates to Exploration Results is based on and fairly represents
information and supporting documentation compiled by Mr Mark Calderwood and Mr Gareth Reynolds,
both employees of Tawana Resources NL (“Tawana”). Mr Calderwood is a member of The Australasian
Institute of Mining and Metallurgy and Mr Reynolds is a member of the Australian Institute of
Geoscientists. Mr Calderwood and Mr Reynolds have sufficient experience relevant to the style of
mineralisation under consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Mr Calderwood and Mr Reynolds consent to the
inclusion in this report of the matters based on their information in the form and context in which it
appears.
Metallurgy
Noel O’Brien, FAusIMM, MBA, B. Met Eng. Mr O’Brien is not an employee of Tawana, but is employed
as a contract consultant. Mr O’Brien is a Fellow of the Australasian Institute of Mining and Metallurgy,
and he has sufficient experience with the style of processing response and type of deposit under
consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012
edition of the “Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves” (The JORC Code). Mr O’Brien consents to the inclusion in this report of the contained
technical information in the form and context as it appears.
Directors’ Report
Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated,
resources and reserves; planned production and operating costs profiles; planned capital requirements;
and planned strategies and corporate objectives. Such forward looking statements/projections are
estimates for discussion purposes only and should not be relied upon. They are not guarantees of future
performance and involve known and unknown risks, uncertainties and other factors many of which are
beyond the control of Tawana Resources NL. The forward looking statements/projections are inherently
uncertain and may therefore differ materially from results ultimately achieved.
Tawana Resources NL does not make any representations and provides no warranties concerning the
accuracy of the projections, and disclaims any obligation to update or revise any forward looking
statements/projects based on new information, future events or otherwise except to the extent required
by applicable laws. While the information contained in this report has been prepared in good faith,
neither TAW or any of its directors, officers, agents, employees or advisors give any representation or
warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the
information, opinions and conclusions contained in this presentation. Accordingly, to the maximum
extent permitted by law, none of TAW, its directors, employees or agents, advisers, nor any other person
accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or
otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions
contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever
arising, from the use of this presentation.
Auditor’s Independence Declaration
Auditor’s Independence Declaration to the Directors of Tawana Resources NL
As lead auditor for the review of Tawana Resources NL for the half-year ended 30 June 2017, I declare
to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation
to the review; and
b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Tawana Resources NL and the entities it controlled during the
financial period.
Ernst & Young
R J Curtin
Partner
13 September 2017
General Information
The half year consolidated financial statements cover Tawana Resources NL as a consolidated entity
consisting of Tawana Resources NL and its subsidiaries. The half year consolidated financial
statements are presented in Australian dollars, which is Tawana Resources NL’s functional and
presentation currency.
Tawana Resources NL is a listed public company limited by shares, incorporated and domiciled in
Australia. Its registered office and principal place of business is:
Level 3, 20 Parkland Road
Osborne Park WA 6017
Telephone: +61 8 9489 2600
Website: www.tawana.com.au
A description of the nature of the consolidated entity’s operations and its principal activities are included
in the directors’ report which is not part of the half year consolidated financial statements.
The half year consolidated financial statements were authorised for issue, in accordance with a
resolution of directors on 13 September 2017.
Consolidated Statement of Comprehensive Income
For the half-year ended 30 June 2017
Note 30 June 2017 30 June 2016
$ $
Continuing operations
Income 3 29,774 6,274
Corporate costs 3 (556,594) (313,356)
Depreciation (31,750) (13,243)
Employee benefits expense 3 (354,668) (107,479)
Share-based payments 11(b) (2,393,075) -
Exploration expenses written off 8 (1,668,060) (132,974)
Foreign exchange gain (7) 638
Other expenses (103,505) (1,590)
Loss before income tax expense (5,077,885) (561,730)
Income tax expense - -
Net loss for the period attributable to
the members of Tawana Resources NL (5,077,885) (561,730)
Other comprehensive income/(loss)
Items that may be reclassified to profit
or loss
Gain/(loss) on translation of foreign
operations 24,023 (1,821)
Total comprehensive loss for the
period attributable to the members
of Tawana Resources NL (5,053,862) (563,551)
Basic and diluted loss per share from
operations (cents) 16 (2.78) (0.67)
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
Consolidated Statement of Financial Position
As at 30 June 2017
Note 30 June 31 December
2017 2016
$ $
Current assets
Cash and cash equivalents 4 11,214,220 6,959,711
Receivables 5 1,184,056 253,174
Prepayments 6 3,168,320 11,860
Other financial assets 301,804 56,734
Total current assets 15,868,400 7,281,479
Non-current assets
Plant and equipment 7 246,670 60,975
Exploration expenditure 8 19,917,670 12,462,891
Mine properties 9 511,057 -
Total non-current assets 20,675,397 12,523,866
Total assets 36,543,797 19,805,345
Current liabilities
Trade and other payables 1,075,926 1,017,097
Subscription proceeds received in advance - 195,120
Unearned revenue 10 3,750,000 -
Provisions 54,015 19,515
Total current liabilities 4,879,941 1,231,732
Non-current liabilities
Provisions 8,627 -
Total non-current liabilities 8,627 -
Total liabilities 4,888,568 1,231,732
Net assets 31,655,229 18,573,613
Equity
Contributed equity 11(a) 88,775,892 73,033,489
Reserves 5,251,487 2,834,389
Accumulated losses (62,372,150) (57,294,265)
Total equity 31,655,229 18,573,613
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2017
Reserves
Issued Options Foreign Other Accumulated Total
capital Reserve Currency Reserves losses
Reserve
$ $ $ $ $ $
Balance at 1
January 2017 73,033,489 1,094,788 1,716,717 22,884 (57,294,265) 18,573,613
Comprehen-
sive income
Loss for the
period - - - - (5,077,885) (5,077,885)
Other
comprehensive
loss for the
period - - 24,023 - - 24,023
Total
comprehensive
loss for the
period - - 24,023 - (5,077,885) (5,053,862)
Transactions
with
owners in
their
capacity as
owners
Shares issued,
net of costs 15,742,403 - - - - 15,742,403
Options issued - 2,393,075 - - - 2,393,075
Total
transactions
with
owners in their
capacity as 15,742,403 2,393,075 - - - 18,135,478
owners
Balance at 30
June 2017 88,775,892 3,487,863 1,740,740 22,884 (62,372,150) 31,655,229
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Consolidated Statement of Changes in Equity
For the half-year ended 30 June 2017
Reserves
Issued Options Foreign Other Accumulated Total
capital Reserve Currency Reserves losses
Reserve
$ $ $ $ $ $
Balance at 1
January 2016 54,419,776 411,645 1,732,443 22,884 (55,994,131) 592,617
Comprehensive
income
Loss for the
period - - - - (561,730) (561,730)
Other
comprehensive
loss for the
period - - (1,821) - - (1,821)
Total
comprehensive
loss for the
period - - (1,821) - (561,730) (563,551)
Transactions
with
owners in their
capacity as
owners
Shares issued,
net of costs 1,032,020 - - - - 1,032,020
Options lapsed - (28,796) - - 28,796 -
Options issued - 29,588 - - - 29,588
Total
transactions with
owners in their
capacity as
owners 1,032,020 792 - - 28,796 1,061,608
Balance at 30
June 2016 55,451,796 412,437 1,730,622 22,884 (56,527,065) 1,090,674
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Consolidated Statement of Cash Flows
For the half-year ended 30 June 2017
Note 30 June 2017 30 June 2016
$ $
Cash flows from operating activities
Proceeds received in advance from Burwill Holdings
Ltd 3,750,000 -
Interest received 33,755 4,238
Other income - 1,400
Payments to suppliers and employees (1,066,433) (586,227)
Payments for deposits and bonds (195,346) -
Net cash flows used in operating activities 2,521,976 (580,589)
Cash flows from investing activities
Proceeds from disposal of plant and equipment - 9,540
Payments for purchase of plant and equipment (214,121) -
Payments for exploration and evaluation expenditure (7,619,157) (128,744)
Payments for development (469,114) -
Payments for acquisition of tenements (1,000,000) -
Prepayments for construction of plant and equipment (3,341,998) -
Proceeds received in advance for sale of subsidiary - 70,813
Net cash flows used in investing activities (12,644,390) (48,391)
Cash flows from financing activities
Proceeds from issue of shares 15,185,400 1,077,395
Capital raising costs (808,330) (44,415)
Net cash flows from financing activities 14,377,070 1,032,980
Net increase in cash and cash equivalents 4,254,656 404,000
Cash and cash equivalents at beginning of period 6,959,711 808,342
Effects of exchange rates on cash holdings in foreign
currencies (147) 670
Cash and cash equivalents at end of period 4 11,214,220 1,213,012
The above Consolidated Statement of Cash Flows should be read in conjunction with the
accompanying notes.
Notes to the Financial Statements
For the half-year ended 30 June 2017
1. Basis of preparation
These half-year consolidated financial statements are general purpose condensed financial
statements prepared in accordance with the requirements of the Corporations Act 2001 and
Australian Accounting Standard AASB 134: Interim Financial Reporting.
It is recommended that these financial statements be read in conjunction with the annual financial
report for the year ended 31 December 2016 and any public announcements made by Tawana
Resources NL and its controlled entities (“the Group”) during the half-year in accordance with
continuous disclosure requirements arising under the Corporations Act 2001.
The half-year financial statements do not include full disclosures of the type normally included in
annual financial statements.
The accounting policies applied by the Group in the consolidated interim financial statements are
the same as those applied by the Group in its consolidated financial report for the year ended 31
December 2016, with the exception of the following:
Mine Properties
Mine property and development assets are stated at historical cost less accumulated amortisation
and any impairment losses recognised. Mine property and development assets include costs
incurred in evaluating and accessing the ore body and costs to develop the mine to the production
phase, once the commercial viability of an ore body has been established. Any ongoing costs
associated with mining which are considered to benefit mining operations in future periods are
capitalised.
Unearned Revenue
Revenue from long-term offtake agreements is a payment for future product to be delivered.
Advance customer payments are unearned revenues at the time of receipt. When the product is
delivered to the customer the unearned revenue will be released to the income statement on an
undiscounted basis.
All new and amended Accounting Standards and Interpretations effective from 1 January 2017
have been adopted. The adoption of these new standards and interpretations had no effect on
the financial position of performance of the Group.
Reporting Basis and Conventions
The half-year financial statements have been prepared on an accruals basis and are based on
historical costs.
Going Concern
The Group recorded a loss of $5,077,885 (2016 HY: loss $561,730) and had net cash outflows
from operating and investing activities of $10,122,414 (2016 HY: loss $628,980) for the half-year
ended 30 June 2017. The Group had cash and cash equivalents at 30 June 2017 and 13
September 2017 of $11,214,220 and $10,208,666 respectively. In accordance with the lithium
concentrate offtake agreement signed with Burwill Holdings Ltd in April 2017, the Group is due to
receive the final instalment payment of $4,375,000 on 15 September 2017.
The Group’s cash flow forecast reflects that in addition to the receipt of final instalment from
Burwill Holdings Ltd of $4,375,000 (as detailed above), the Group will need to raise additional
funds during the quarter ending 31 December 2017 to enable it to meet its committed and planned
capital expenditure, in particular for the Group’s flagship Bald Hill Project and for ongoing working
capital requirements. The Directors are currently reviewing a range of financing options which
may include the further issue of new equity. The Directors are satisfied they will be able to raise
additional capital as required and thus it is appropriate to prepare the financial statements on a
going concern basis.
The financial statements do not include any adjustment relation to the recoverability and
classification of recorded asset amounts, nor to the amounts or classification of liabilities that
might be necessary should the Group not be able to continue as a going concern.
Notes to the Financial Statements
For the half-year ended 30 June 2017
2. Dividends
No dividend has been declared or paid during the half-year or the previous corresponding period
(2016: Nil).
3. Revenue and expenses
30 June 30 June
2017 2016
$ $
Revenue
Interest Received 27,149 4,774
Other Income 2,625 1,500
29,774 6,274
Expenses
Corporate expenses include:
Auditors’ remuneration 32,183 53,198
Compliance and regulatory fees 160,632 62,988
Consultancy and legal fees 150,979 35,352
Occupancy costs 40,300 51,905
Travel expenses 50,334 6,941
Other expenses 122,166 102,972
556,594 313,356
Employee benefits expenses include:
Salaries and wages 682,045 45,763
Superannuation 58,831 3,014
Directors’ fees 72,611 62,208
Other employee expenses (including
movements in provision for annual leave
and long service leave) 153,091 (3,506)
966,578 107,479
4. Cash and cash equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents are
comprised of the following:
30 June 31 December
2017 2016
$ $
Cash at bank and in hand 11,214,220 4,959,711
Short term deposits - 2,000,000
Total cash and cash equivalents 11,214,220 6,959,711
5. Receivables
30 June 31 December
2017 2016
$ $
GST receivable 823,807 245,146
Other receivables 360,249 8,028
Total receivables 1,184,056 253,174
Notes to the Financial Statements
For the half-year ended 30 June 2017
6. Prepayments
30 June 31 December
2017 2016
$ $
Prepayment to Primero Group Pty Ltd1 3,038,180 -
Other prepayments 130,140 11,860
Total prepayments 3,168,320 11,860
1In May 2017, Tawana made a prepayment of $3,038,180 (exclusive of GST) to Primero Group
Pty Ltd for the early works program for the development of the Bald Hill Lithium and Tantalum
Mine in Western Australia.
7. Property, plant and equipment
30 June 31 December
2017 2016
$ $
Gross carrying amount
Balance at beginning of the year 203,760 292,285
Additions 214,121 25,953
Disposals (19,373) (13,324)
Foreign currency translation - (101,154)
Balance at end of the year 398,508 203,760
Accumulated depreciation
Balance at beginning of the year 142,785 231,869
Depreciation 28,426 25,226
Depreciation reversal on disposal (19,373) (12,898)
Foreign currency translation - (101,412)
Balance at end of the year 151,838 142,785
Net book value 246,670 60,975
8. Exploration expenditure
The exploration and evaluation expenditure relates to the Consolidated Entity’s projects in
Namibia, Liberia and Western Australia.
30 June 31 December
2017 2016
$ $
Balance at beginning of year 12,462,891 -
Acquisition of tenements/assets 2,270,213 9,450,000
Expenditure during the year 6,852,626 2,464,193
Deferred consideration on acquisition
of tenements - 787,500
Expenditure written off during the year (1,668,060)(i) (238,802)
Foreign currency translation - -
Balance at end of year 19,917,670 12,462,891
Notes to the Financial Statements
For the half-year ended 30 June 2017
The recoverability of the carrying amount of exploration expenditure is dependent on the
successful development and commercial exploitation, or alternatively through the sale of the
respective area of interest.
Exploration and evaluation activities at the Mofe Creek iron ore project were placed on care and
maintenance in 2015 and consequently the Company continues to write off exploration
expenditure as incurred at Mofe Creek.
(i) As at 30 June 2017, the Company decided not to proceed with the Uis Project in Namibia, as
initial metallurgical testwork were not sufficiently encouraging and due to the significant time
commitments associated with developing the Bald Hill Lithium and Tantalum Mine. Consequently,
the Company wrote off exploration expenditure on the Uis Project.
9. Mine properties
Mine properties relate to amount spent in capital expenditure for upgrading and converting the
plant for processing ore derived from the Bald Hill Project, infrastructure costs, pre-stripping
activities and other expenditures.
30 June 31 December
2017 2016
$ $
Mine properties 511,057 -
Total mine properties 511,057 -
10. Unearned Revenue
Tawana signed a binding long-term exclusive lithium concentrate offtake agreement with a 100%
owned subsidiary of Burwill Holdings Ltd (“Burwill”).
The contract is for the supply of lithium concentrate from the Bald Hill Project in Western Australia
over an approximate initial five-year term. As part of the terms of the lithium concentrate offtake
agreement, Burwill also agreed to advance $12,500,000 (“Advance Payment Amount”) in the
amounts and on the dates set below:
• $3,750,000 was received on signing the Agreement;
• $4,375,000 on 15 July 2017 (this has also been received); and
• $4,375,000 on 15 September 2017.
The Advance Payments shall be used for the development and operational costs of the Bald Hill
Project.
11. Contributed equity
(a) Movements in share capital
30 June 31 December
2017 2016
$ $
Ordinary shares, fully paid 442,117,700 73,033,489
Movement in ordinary shares on issue
Number $
Balance at 1 January 2017 371,854,502 73,033,489
Shares issued 70,263,198 16,550,733
Share issue costs – (808,330)
Balance at 30 June 2017 442,117,700 88,775,892
Notes to the Financial Statements
For the half-year ended 30 June 2017
(b) Share options
Exercise Expiry Balance at Issued Expired or Balance at
price date beginning of during the forfeited or end of
period period lapsed during period
the period
Number Number Number Number
Unlisted options $0.178 26 May 18 550,000 - - 550,000
Unlisted options $0.035 14 Jun 18 2,500,000 - - 2,500,000
Unlisted options $0.060 30 Jun 19 3,000,000 - - 3,000,000
Unlisted options $0.060 30 Jun 19 2,000,000 - - 2,000,000
Unlisted options $0.130 07 Jan 20 - 2,625,000 - 2,625,000
Unlisted options $0.160 01 Mar 19 - 500,000 - 500,000
Unlisted options $0.230 27 Mar 20 - 500,000 - 500,000
Unlisted options $0.160 15 Mar 20 - 1,500,000 - 1,500,000
Unlisted options $0.180 08 May 20 - 750,000 - 750,000
Unlisted options $0.200 12 Apr 20 - 3,000,000 - 3,000,000
Unlisted options $0.250 12 Apr 20 - 3,000,000 - 3,000,000
Unlisted options $0.300 12 Apr 20 - 3,000,000 - 3,000,000
Unlisted options $0.200 15 Jun 20 - 1,500,000 - 1,500,000
8,050,000 16,375,000 - 24,425,000
The valuation inputs used in determining the fair value of the options granted (using the Black-
Scholes model) during the half-year were as follows:
Quantity 2,625,000 500,000 500,000 1,500,000
Grant date 6 Jan 17 1 Mar 17 27 Mar 17 15 Mar 17
Expiry date 7 Jan 20 1 Mar 19 27 Mar 20 15 Mar 20
Grant date share price $0.115 $0.205 $0.205 $0.205
Exercise price $0.130 $0.160 $0.230 $0.160
Expected volatility 133% 134% 134% 134%
Option life (years) 3 2 3 3
Expected dividend yield 0% 0% 0% 0%
Risk free rate at grant date 1.94% 1.67% 1.90% 1.90%
Quantity 750,000 3,000,000 3,000,000 3,000,000
Grant date 8 May 17 12 Apr 17 12 Apr 17 12 Apr 17
Expiry date 8 May 20 12 Apr 20 12 Apr 20 12 Apr 20
Grant date share price $0.205 $0.265 $0.265 $0.265
Exercise price $0.180 $0.200 $0.250 $0.300
Expected volatility 134% 134% 134% 134%
Option life (years) 3 3 3 3
Expected dividend yield 0% 0% 0% 0%
Risk free rate at grant date 1.90% 1.77% 1.77% 1.77%
Quantity 1,500,000
Grant date 16 Jun 17
Expiry date 15 Jun 20
Grant date share price $0.200
Exercise price $0.200
Expected volatility 131%
Option life (years) 3
Expected dividend yield 0%
Risk free rate at grant date 1.78%
Notes to the Financial Statements
For the half-year ended 30 June 2017
12. Segment information
Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed
and used by the Board of Directors (the chief operating decision makers) in assessing
performance and in determining the allocation of resources.
The Group only has one segment being mineral exploration in Liberia, Namibia and Western
Australia. Accordingly, all significant operating disclosures are based upon analysis of the Group
as one segment. The non-current assets at each geographical location are detailed below.
Western Australia Liberia Namibia
2017 2016 2017 2016 2017 2016
$ $ $ $ $ $
Non-current assets 20,651,338 11,010,124 24,059 35,729 - 1,478,013
13. Contingent assets and liabilities and commitments
There has been no significant changes to contingent liabilities and commitments since 31
December 2016.
14. Related party transactions
There have been no other significant transactions with related parties that were entered into
during the period.
15. Financial instruments
The fair value of financial assets and financial liabilities of the Group approximated their carrying
amount.
16. Loss per share
30 June 30 June
2017 2016
Loss from continuing and discontinuing operations used in
the calculation of basic EPS (5,077,885) (561,730)
Loss from continuing operations used in the calculation of
basic EPS (5,077,885) (561,730)
Loss from discontinued operations used in the calculation
of basic EPS - -
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share 182,865,874 83,249,707
The loss per share calculation as disclosed on the Consolidated Statement of Comprehensive
Income does not include instruments that could potentially dilute basic earnings per share in the
future as these instruments were anti-dilutive in the periods presented.
Notes to the Financial Statements
For the half-year ended 30 June 2017
Headline loss per share disclosed as required by the JSE Limited is detailed below:
30 June 30 June
2017 2016
Headline loss (5,077,885) (561,730)
Headline loss per share (cents) 2.78 0.67
17. Subsequent events
Disposal of Lithium Africa no. 1 Pty Ltd (LA1)
On 5 July 2017, Tawana and the former shareholders of Lithium Africa no. 1 Pty Ltd signed an
agreement whereby Tawana sold the holding company that held the rights to the Uis stockpiles back to
the original vendors for $1.
Operating Lease
As from 1 July 2017, Tawana Resources NL’s principal place of business and registered address was
changed to Level 3, 20 Parkland Road, Osborne Park WA 6017. The lease for the office is for a 3-year
term, with an option to extend for a further 2 years.
Offtake Prepayment
On 17 July 2017, Tawana Resources NL received a second payment of $4,375,000, which forms part
of the lithium concentrate offtake agreement from a subsidiary of Burwill Holdings Ltd, a company listed
on the main Board of The Stock Exchange of Hong Kong Limited, which was signed in April 2017.
Appointment of Non-Executive Directors
Robert Vassie and Mark Turner were appointed Non-Executive Directors of the Company effective 1
August 2017.
Robert Vassie is a Mining Engineer with 30 years’ international mining industry experience and 18
years’ experience in a range of senior management roles with Rio Tinto. He is currently the Managing
Director & CEO of St Barbara Limited and has particular experience in operations management,
resource development strategy, mine planning, feasibility studies, business improvement, corporate
restructuring and strategic procurement.
Mark Turner is a Mining Engineer with more than 30 years of experience in the resources sector. He
has been responsible for the start-up and operation of mines in Australia, Africa and Asia. He was
previously General Manager Operations of Resolute Mining Ltd, one of Australia’s largest gold
producers and Chief Operating Officer (“COO”) of CGA Mining, before its takeover by B2 Gold for C$1.1
billion in 2010. He is currently the Chief Operating Officer of RTG Mining Inc.
Execution of Engineering, Procurement and Construction (EPC) agreement
The Engineering, Procurement and Construction (EPC) contract was executed with Primero Group,
enabling construction to commence at the 1.2 million tonne per annum Dense Media Separation circuit
at the Bald Hill Lithium and Tantalum Mine in August 2017.
Issue of Options
The Company issued 750,000 options at an exercise price of $0.20, $0.22 and $0.24 per option and an
expiry date of 21 August 2020.
Directors’ Declaration
In accordance with a resolution of the Board of Directors, I state that:
In the opinion of the Directors:
1. The interim financial statements and notes are in accordance with the Corporations Act 2001
and:
(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001; and
(b) Give a true and fair view of the financial position of the consolidated entity as at 30 June
2017 and of its performance for the half-year ended on that date.
2. Subject to achieving the matters set out in Note 1, there are reasonable grounds to believe that
the Company will be able to pay its debts as and when they become due and payable.
On behalf of the Board
Mr Mark Calderwood
Managing Director
Dated this 13th day of September 2017
Independent Auditor’s Report
Independent Auditor’s Report to the Members of Tawana Resources NL
Report on the Half-Year Financial Report
Conclusion
We have reviewed the accompanying half-year financial report of Tawana Resources NL (the
Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of
financial position as at 30 June 2017, the consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the half-year
ended on that date, notes comprising a summary of significant accounting policies and other
explanatory information, and the directors’ declaration.
Based on our review, which is not an audit, nothing has come to our attention that causes us to believe
that the half-year financial report of the Group is not in accordance with the Corporations Act 2001,
including:
a) giving a true and fair view of the consolidated financial position of the Group as at 30 June 2017
and of its consolidated financial performance for the half-year ended on that date; and
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001.
Emphasis of Matter – Material Uncertainty Related to Going Concern
Without qualifying our opinion, we draw attention to Note 1 in the financial report which describes the
principal conditions that raise doubt about the Group’s ability to continue as a going concern. These
conditions indicate the existence of a material uncertainty that may cast significant doubt about the
Group’s ability to continue as a going concern and therefore, the consolidated entity may be unable to
realise its assets and discharge its liabilities in the normal course of business.
Directors’ Responsibility for the Half-Year Financial Report
The directors of the Company are responsible for the preparation of the half-year financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the Corporations
Act 2001 and for such internal control as the directors determine is necessary to enable the preparation
of the half-year financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410
Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state
whether, on the basis of the procedures described, anything has come to our attention that causes us
to believe that the half-year financial report is not in accordance with the Corporations Act 2001
including: giving a true and fair view of the Group’s consolidated financial position as at 30 June 2017
and its consolidated financial
performance for the half-year ended on that date; and complying with Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Group, ASRE
2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial
report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Independence
Independent Auditor’s Report
In conducting our review, we have complied with the independence requirements of the Corporations
Act 2001.
Ernst & Young
R J Curtin
Partner
Perth
13 September 2017
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