Wrap Text
Quarterly Activities Report For the quarter to 30 September 2017 and Appendix 5B
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”)
Quarterly Activities Report For the quarter to 30 September 2017
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA
WEBSITE FOR THE COMPLETE ANNOUNCEMENT.
Highlights
Bald Hill Lithium Project (TAW 50%)1
- Construction commenced on lithium plant at Bald Hill
o Engineering, Procurement and Construction (EPC) contract awarded to Primero Group.
o Project construction on track, commissioning expected to begin in Q1 2018.
o Bulk earthworks completed; additional administration buildings placed; and communications
towers installed and commissioned.
o Significant operational tenders received and under review. Tenders expected to be awarded in
the coming month are mining, crushing, haulage, fuel and power.
o Senior operations and development personnel appointed.
- Mineral Resource2 for Bald Hill updated, increasing the Indicated and Inferred lithium Mineral
Resource:
o High-grade lithium resources of 18.9Mt at 1.18% Li2O and 149ppm Ta205 at a 0.5% Li20 cut-off;
and
o Additional tantalum resources of 6.4Mt at 330ppm Ta2O5 at a 200ppm Ta2O5 cut-off.
o The Resource update represents a 47% increase in total contained lithium.
o The 66% increase in contained lithium within Indicated resources is expected to result in a
Reserve upgrade later in the year.
o The updated Resource covers only 25% of the known southern swarm of lithium pegmatites.
- Metallurgical test work on ore fines delivered excellent results from both fine Dense Media
Separation (DMS) and flotation, highlighting the potential to increase proposed lithium production
during 2018.
o Phase 2 DMS concentrate production would have a relatively low incremental unit cost given
most costs are carried by Phase 1 operating costs, including mining, primary crushing and the
bulk of the labour and general and administration costs.
o Results highlighted the potential to increase proposed lithium production by 25% in 2018.
- Wide-spaced deep drilling confirmed that the interpreted large SE pegmatite continues below the
starter pit and contains high-grade lithium and tantalum.
Corporate
- Tawana fully funded after securing $25m for Bald Hill Lithium Mine
o $20 million equity investment at a premium to 10-day VWAP at favourable terms from
new strategic lithium industry specialist involved in the production of lithium battery
cathode materials and electric vehicles, and $5 million loan at favourable terms from its
nominee; and
o Amendments to offtake agreement with Burwill Commodity Limited (Burwill), including a
reduction in the repayment of prepayment to a rate of 15% from the value of each lithium
concentrate shipment (down from 20%).
- Tawana has completed earn-in to Bald Hill
o Tawana spent the required $12,500,000 to earn a 50% interest in the Bald Hill Project
(being all minerals from the tenements and the processing plant and infrastructure at
Bald Hill).
o Tawana, via Lithco No. 2 Pty Ltd (Lithco) and AMAL each now have an equal 50:50 legal
and beneficial interest in the Bald Hill Project
- As at 30 September 2017 the Company held $12m in cash.
- Third and final offtake prepayment of $4.375m received with full amount of $12.5m from
Burwill received during the quarter.
- Experienced mining professionals, Robert (Bob) Vassie and Mark Turner appointed to Tawana
Board.
Bald Hill Project (TAW 50%, AMAL 50%)1
The Bald Hill Lithium and Tantalum Mine (Bald Hill Mine or the Project) area 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 791.3km2.
Construction and Development
In August, Tawana announced that construction of the lithium plant at the Bald Hill Mine had
commenced following the Company awarding an Engineering, Procurement and Construction (EPC)
contract to Primero Group to build a 1.2Mtpa Dense Media Separation (DMS) circuit.
Tawana awarded the contract to Primero due to the contractor’s expertise in lithium projects, having
commissioned a DMS lithium plant in WA as well as being involved in several significant lithium
projects internationally.
EPC Update
- Engineering is well-advanced with design more than 70% complete.
- Concrete works well-advanced.
- Buried services (electrical/piping) progressing with conduits & pits being positioned/installed
and HDPE pipes being welded ready for installation.
- Steelwork is progressively being detailed and progressing through fabrication and painting.
First package of structural steel has arrived on site and is being erected.
- Procurement of major equipment is progressing with critical orders on track.
Major Contracts
- Mining tender closed; unit pricing equal to the Pre-feasibility study (PFS). Three contractors
shortlisted, with the preferred contractor to be notified imminently.
- Fuel and Power tenders closed; unit pricing consistent with PFS.
- Crushing tenders closed, currently under review.
- Non-Processing Infrastructure tenders closed; review underway.
- Haul road upgrade tender closed, currently under review.
Key Personnel
A number of key recent appointments to enhance the development and operational skills of Tawana
and the joint venture were made. These included:
- Steve Zaninovich – Project Director
- Rob Broad – Project Manager
- Darren Buchholz – Operations Manager
Accommodation Camp
In addition to the 40-room existing camp, personnel are also now being housed at the leased 150-person
Lanfranchi camp. Tawana is currently assessing the merits of expanding the current 40-room camp at Bald
Hill.
Mineral Resource update2
Subsequent to quarter-end, Tawana released an updated lithium and tantalum Mineral Resource
estimate for the Bald Hill Project which was completed by CSA Global Pty Ltd.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub-horizontal pegmatite body,
striking north-south, with a strike length of 1,230m, and a width at its widest point of 1,080m. 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 2,045m, and a total width of 1,800m.
The Mineral Resource has a total vertical depth of 245m, beginning 20m 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 drill holes
spacing, estimation quality statistics (kriging slope of regression), number of informing samples,
average distance to informing samples in comparison to the semi-variogram model ranges, and
overall coherence and continuity of the modelled mineralisation wireframes.
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 8.0 1.18 95,000 190 2,800
Inferred 10.9 1.18 128,300 118 2,300
Total 18.9 1.18 223,300 149 5,100
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 2.5 1.20 33,300 315 1,900
Inferred 1.2 1.18 14,500 296 800
Total 4.0 1.20 47,800 309 2,700
Note: The tantalum resources form part of the lithium/tantalum resources reported in Table 1.
Previous Indicated and Inferred lithium Mineral Resources were 12.8 million tonnes at 1.18% Li2O,
and 158ppm Ta205 at a 0.5% Li20 cut-off for the Project.
Reserves3 currently stand at 4.3Mt at 1.18% Li2O and 208ppm Ta2O5, representing a 94% conversion
of the June 2017 Indicated Resources above 0.5% Li20 cut-off. The Project remains significantly
underexplored as highlighted by significant exploration drill results post the June resource statement.
More detail of the Mineral Resource update can be found in the ASX Announcement dated 11
October 2017.
Metallurgical Test Work
Test work completed on ore fines delivered excellent results from both fine Dense Media Separation
(DMS) and flotation during the quarter, highlighting the potential to increase proposed lithium
production during 2018.
Highlights of the test work included:
- Three-stage sighter flotation test work returned a recovery to concentrate of 83% at a
concentrate grade of 4.7% Li2O from feed at P80 passing 0.212mm.
- DMS test work on 0.3-1mm Fines indicates a range of 71% to 91% recovery of lithium with a
concentrate grades of up to 5.3% Li2O
- Preliminary assessment indicated the fine DMS option would be a significantly lower cost
Phase 2 option for the bulk of the combined fines and middlings.
Tawana’s Pre-Feasibility Study1 (PFS) Design Mass Balance had 17.8% of lithium ore feed reporting to
fines and 10.3% of ore feed reporting to middling concentrates (middlings). This represents 28.1% of
feed containing 29.6% of the contained lithium which is not contained in the PFS production profile,
highlighting the significance of the potential production increase.
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 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. 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.
Conceptually, the middlings would be crushed with +1mm material and passed through a small
middlings DMS while the 0.3-1mm passes through a small fine DMS (Both Phase 2 DMS). These two
fractions are likely to represent about 20% of total plant feed and 24% of contained Lithium.
The average production rate in the PFS is approximately 150,000tpa of spodumene concentrate.
Based on 70% recovery the Phase 2 DMS has the potential to increase spodumene production by
25% with a combined Phase 1 and Phase 2 DMS recovery of about 82.5%.
Phase 2 DMS concentrate production would have a relatively low incremental unit cost given most
costs are carried by Phase 1 operating costs, including mining, primary crushing and the bulk of the
labour and general and administration costs.
Extensional and Infill Drilling4
Tawana announced results from drilling undertaken from May to July 2017. The Company completed
96 exploration reverse circulation (RC) and diamond drill holes totalling 14,819m. Assays were
received for 123 holes since the May drilling update.
A new zone of high-grade pegmatites was discovered south of Bore Line pits, starting close to
surface. The mineralised pegmatites remain open to the south east. Significant results included:
- 6m at 1.79% Li2O from 31m, in water monitoring RC hole GMB03;
- 8m at 1.29% Li2O from 54m, 5m at 1.34% Li2O from 114m and 5m at 1.71% Li2O from 138m in
LRC0594;
- 13m at 1.24% Li2O from 56m in LRC0609;
- 12m at 1.55% Li2O from 70m incl. 7m at 2.05% Li2O in LRC0611; and
- 15m at 1.52% Li2O from 87m incl. 8m at 1.79% Li2O in LRC0612.
Extensional drilling expanded the existing Resource footprint. Significant intercepts included:
- 35m at 0.9% Li2O from 97m including 22m at 1.09% Li2O in LRC0663;
- 21m at 1.12% Li2O from 109m incl. 8m at 1.72% Li2O in LRC0464;
- 20m at 1.27% Li2O from 93m incl. 1m at 3.00% Li2O and 6m at 1.99% Li2O in LRC0465;
- 6m at 1.99% Li2O and from 34m incl. 1m at 5.05% Li2O in LRC0520; -
- 10m at 0.93% Li2O from 135m and 15m at 1.35% Li2O from 153m incl. 11m at 1.64% Li2O in
LRC0432; and
- 3m at 1,295ppm Ta2O5 from 110m, 15m at 1.11% Li2O from 114m incl. 7m at 1.56% Li2O in
LRC0441.
Infill drilling returned significant intercepts as expected, including:
- 14m at 1.37% Li2O from 76m in water bore exploration RC hole KCBPB01;
- 6m at 1.50% Li2O from 39m in water bore exploration RC hole KCBPB02;
- 6m at 1.57% Li2O from 57m in water bore exploration RC hole KCBPB03;
- 14m at 1.19% Li2O from 132m in LRC0463;
- 23m at 1.00% Li2O from 140m incl. 8m at 1.36% Li2O in LRC0435;
- 16m at 1.35% Li2O and 212ppm Ta205 from 118m in LRC0619; and
- 17m at 2.04% Li2O and 406ppm Ta2O5 from 95m incl. 2m at 5.64% Li2O, and 4m at 1.48% Li2O
from 141m in LRC0620.
Wide-spaced deep drilling confirmed the interpreted large SE pegmatite continues below the starter
pit and contains high-grade lithium and tantalum. Significant results included:
- 6.7m at 2.38% Li2O and 346ppm Ta2O5 from 136.2m in LRCD308;
- 19.9m at 1.28% Li2O from 194m incl. 13m at 1.67% Li2O in LRCD0557;
- 10m at 1.74% Li2O and 356ppm Ta2O5 from 240m incl. 1m at 4.66% Li2O and 2,043ppm Ta2O5
in LRC651; and
- 5.7m at 1.66% Li2O from 258m incl. 4m at 1.97% Li2O in LRCD0096.
A highly anomalous lithium intercept in water bore RC drilling 3.6km to the north of the resource
area highlighted the broader exploration potential, with:
- 4m at 0.71% Li2O from 91m incl. 1m at 1.76% Li2O and 6m at 0.96% Li2O from 121m including
2m at 1.84% Li2O in KCBPB05.
These results were incorporated into the Mineral Resource update announced on 11 October 2017.
Cowan Lithium Project
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 2017.
The Cowan Project contains many LCT pegmatites some of which are proven to contain significant
spodumene. No significant exploration was conducted on Cowan during the quarter.
Yallari Project
The Company’s Yallari project is located 6km west of the Mt Marion lithium mine (75km NW 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.
Limited exploration for lithium has been undertaken to date, however the project is considered
highly prospective.
Corporate
Funding
After the end of the quarter, Tawana completed a $25m funding package to develop the Bald Hill
Lithium and Tantalum Mine which included a $20m placement and $5m loan facility from German
company Weier Antriebe und Energietechnik GmbH (Weier) which is a 100% owned subsidiary of
lithium industry specialist Jiangte Special Electric Motor Co. Ltd (JSMC), a company listed on the
Shenzhen Stock Exchange.
The placement to Weier will be completed in two tranches:
- The first tranche will consist of 14,285,714 shares at an issue price of $0.35, to be settled on
25 October 2017 (this has been completed); and
- The second tranche will consist of 42,857,143 shares at an issue price of $0.35, to be settled
on 15 November 2017.
The placement is all within the Company’s 15% placement capacity and Weier will hold
approximately 11.5% of the issued capital of Tawana. Weier also has the right to appoint a nominee
to the Board of Directors of Tawana.
The debt will be A$5 million with the following material terms:
- Interest of 11% per annum payable quarterly in arrears;
- Maturity date of 31 December 2019;
- Tawana may repay the debt at any time before maturity without penalty; and
- Security over the DMS plant only.
Refer to ASX announcement on 20 October 2017 for more details
Earn in
In October, Tawana announced that Lithco, a 100% owned subsidiary of Tawana, had spent the
required $12,500,000 to earn a 50% interest in the Bald Hill Project (being all minerals from the
tenements and the processing plant and infrastructure at Bald Hill, located in the Eastern Goldfields,
Western Australia).
As the conditions in the farm-in agreement entered into between Lithco and AMAL on 23 February
2017 have now been satisfied, the Bald Hill Joint Venture Agreement has come into effect, as verified
by independent auditor, Ernst & Young on 20 October 2017. Consequentially, the Bald Hill Joint
Venture Agreement supersedes the Lithium Rights Joint Venture Agreement and Tawana (via Lithco)
and AMAL each have an equal 50:50 legal and beneficial interest in the Bald Hill Project.
Refer to ASX announcement on 24 October 2017 for more details.
Cash Position and Movements
As at 30 September 2017 Tawana Resources held $12m in cash (June 2017: $11.2m).
A total of $5.2m was paid towards the construction of the lithium plant and development at the Bald
Hill Mine and Tawana also received the third and final offtake prepayment of $4.375m during the
quarter.
For further movements in cash during the quarter, refer to the Appendix 5B.
Third Off-Take Pre-Payment Received and Amendments to Offtake Agreement
In September, Tawana received the third payment of A$4,375,000 in accordance with the original
Lithium Concentrate Offtake agreement (refer to ASX announcement of 26 April 2017) from a
subsidiary of Burwill Holdings Ltd (Burwill), a company listed on the Main Board of The Stock
Exchange of Hong Kong Limited (stock code 0024).
This third and final payment has resulted in Tawana having received the full A$12.5m prepayment
committed by Burwill.
In addition, amendments were made to the offtake agreement with Burwill, including a reduction of
the repayment of prepayments to a rate of 15% from the value of each lithium concentrate shipment
(down from 20%).
Board Appointments
Tawana appointed Robert (Bob) Vassie and Mark Turner to the Board as Non-Executive Directors.
Bob 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 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 is a Mining Engineer with more than 30 years’ experience in the resources sector and is the
Chief Operating Officer of RTG Mining Inc. He has led 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.
Tawana Resources NL Tenements (As at 30 September 2017)
Tenement Location Registered Owner Structure and Ownership
Mofe Creek Iron Ore Project
MEL-12029
Liberia Tawana Liberia Inc 100%
Mofe Creek
MEL-1223/14
Liberia Tawana Liberia Inc 100%
Mofe Creek Sth
Cowan Lithium Project
E15/1205 Western Australia Mt Belches Pty Ltd 100%
E15/1377 Western Australia Mt Belches Pty Ltd 100%
E15/1446 Western Australia Mt Belches Pty Ltd 100%
Yallari Project
E15/1401 Western Australia ABEH Pty Ltd Pending, 100%
E15/1526 Western Australia Mt Belches Pty Ltd 100%
Bald Hill Mine
M15/400 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
M15/1470 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
M15/1811 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
M15/1305 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
M15/1308 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
G15/28 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/265 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/266 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/267 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/268 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/269 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/270 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/365 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
L15/366 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5465 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5466 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5467 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5862 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5863 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5864 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5865 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
P15/5866 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
R15/1 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1058 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1212 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1161 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1162 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1166 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1353 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1066 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
E15/1067 Western Australia Alliance Mineral Assets Limited 0%, Earning in 50%
Mining Tenements disposed: Nil
Mining Tenements acquired: Nil
Beneficial percentage interests held in farm in or farm-out agreements: Refer above.
Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed: Nil
Competent Persons Statement
The information in this announcement 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 announcement of the matters based on their information in the form and context in
which it appears.
Mr Calderwood is a significant shareholder in Tawana. Mr Calderwood and Tawana do not consider these to
constitute a potential conflict of interest to his role as Competent Person. Mr Calderwood is not aware of any other
relationship with Tawana which could constitute a potential for a conflict of interest.
Mr Reynolds is an employee of Tawana. Mr Reynolds is not aware of any other relationship with Tawana which could
constitute a potential for a conflict of interest.
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.
End Notes
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
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.
2: All material assumptions and technical parameters underpinning the Mineral Resource estimates in the ASX
announcement dated 11 October 2017 continue to apply and have not materially changed since it was last reported.
The Indicated Resource is 8.0Mt @ 1.18% and the Inferred Resource is 10.9Mt @1.18%.
3: 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.
4: For full details of these Exploration Results refer to ASX announcement of 2 August 2017. Tawana is not
aware of any new information or data that materially affects the information included in the said
announcement.
31 October 2017
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity
quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
Tawana Resources NL
ABN Quarter ended (“current quarter”)
69 085 166 721 30 September 2017
Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (667) (7,632)
(b) development (5,153) (5,570)
(c) production - -
(d) staff costs (1,067) (2,009)
(e) administration and corporate costs (321) (1,153)
1.3 Dividends received (see note 3) - -
1.4 Interest received 17 51
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other – security bond / restricted cash (754) (949)
1.8 Net cash from / (used in) operating (7,945) (17,262)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (36) (250)
(b) tenements (see item 10) - (1,000)
(c) investments - -
(d) other non-current assets - -
Consolidated statement of cash flows Current quarter Year to date
$A’000 (9 months)
$A’000
2.2 Proceeds from the disposal of:
(a) property, plant and equipment 4 4
(b) tenements (see item 10) - -
(c) investments - -
(d) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other – prepayment to Primero Group - (3,342)
2.6 Net cash from / (used in) investing (32) (4,588)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares - 15,185
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of - (808)
shares, convertible notes or options
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and - -
borrowings
3.8 Dividends paid - -
3.9 Other – prepayment from Burwill Holdings 8,750 12,500
Ltd
3.10 Net cash from / (used in) financing 8,750 26,877
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 11,214 6,960
4.2 Net cash from / (used in) operating (7,945) (17,262)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities (32) (4,588)
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 8,750 26,877
(item 3.10 above)
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 11,987 11,987
period
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 11,987 11,214
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 11,987 11,214
quarter (should equal item 4.6 above)
6. Payments to directors of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to these parties included in item 1.2 214
6.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
6.3 Include below any explanation necessary to understand the transactions included in
items 6.1 and 6.2
Directors’ salaries, directors’ fees and superannuation
7. Payments to related entities of the entity and their Current quarter
associates $A'000
7.1 Aggregate amount of payments to these parties included in item 1.2 -
7.2 Aggregate amount of cash flow from loans to these parties included -
in item 2.3
7.3 Include below any explanation necessary to understand the transactions included in
items 7.1 and 7.2
N/A
8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities - -
8.2 Credit standby arrangements - -
8.3 Other (please specify) 12,500 12,500
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
In April 2017, the Company signed a prepayment 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).
No interest is payable in respect of the prepayment and it is unsecured. Tawana shall repay the
outstanding prepayment through 15% 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 prepayment.
9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 505
9.2 Development 16,430
9.3 Production -
9.4 Staff costs 975
9.5 Administration and corporate costs 347
9.6 Other (provide details if material) -
9.7 Total estimated cash outflows 18,257
10. Changes in Tenement Nature of Interest at Interest at
tenements reference and interest beginning end of
(items 2.1(b) and location of quarter quarter
2.2(b) above)
10.1 Interests in mining
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining
tenements and
petroleum tenements
acquired or increased
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which
comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: Date 31 October 2017
(Director/Company secretary)
Print name: Michael Naylor
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities have
been financed for the past quarter and the effect on its cash position. An entity that wishes to
disclose additional information is encouraged to do so, in a note or notes included in or attached
to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards,
the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral
Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report
has been prepared in accordance with other accounting standards agreed by ASX pursuant to
Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows
from investing activities, depending on the accounting policy of the entity.
Date: 31/10/2017 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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information disseminated through SENS.
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