Wrap Text
Quarterly Activities Report For the quarter to 31 December 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”)
Quarterly Activities Report For the quarter to 31 December 2017
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA WEBSITE FOR
THE COMPLETE ANNOUNCEMENT.
Highlights
Bald Hill Lithium and Tantalum Project (TAW 50%)1
- Bald Hill on track for lithium concentrate production in Q1 CY18
o Construction progressing on time.
o Dry commissioning expected to commence by February 2018.
o Mining commenced, 480,000m3 of waste used for construction.
o All major contracts awarded.
- Significant resource upgrade completed2
o Total Inferred and Indicated lithium and tantalum resources above 0.5% Li2O or 200pm Ta2O5 total
25.3 million tonnes (Mt), and comprises:
- High-grade lithium resources of 18.9Mt at 1.18% Li2O and 149ppm Ta205 at a 0.5% Li20 cut-
off; and
- 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 and a 66% increase in
lithium within Indicated resources from prior estimates3.
o Work on reserve upgrade underway and results also expected in Q1 CY18.
- Tantalum offtake term sheet executed post quarter end.
- Bald Hill exploration results significantly increase pegmatite swarm footprint4
o Eastern high-grade extension remaining open to the east and south.
o Boreline south-east extension remaining open to the south.
o Initial lithium drilling at Fenceline prospect intersected significant mineralisation.
o High-grade drill intercepts from below starter pit.
Cowan Project (TAW 100%)
In October 2017, Tawana acquired two approved Exploration Licences (ELs) totalling 410km2, and one
application comprising 152km2 to the south and east of the Bald Hill Mine. The addition of these three
tenements to Tawana’s Cowan Lithium Project will increase the total area from 159km2 to 721km2.
Corporate
- Tawana received $15m second tranche funding in $25m package from Weier Antriebe und
Energietechnik GmbH.
o Weier holds 11.4% of Tawana following completion of the second tranche.
o Weier is a 100%-owned subsidiary of lithium industry specialist Jiangte Special Electric Motor Co.
Ltd, listed on the Shenzhen Stock Exchange.
o $5m in financing from a nominee of Weier expected to be finalised in February 2018.
Bald Hill Lithium and Tantalum Project (TAW 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 100% owned Cowan Lithium Project. The Project comprises four
mining leases, eight exploration licences, eight prospecting licences and five tenement applications totalling
774km2.
Construction and Development
Works at Bald Hill during the December 2017 quarter remained on schedule and within budget, with lithium
concentrate production on track to commence in the March 2018 Quarter.
EPC-DMS Update
- Structural steelwork, walkway, handrail and chute installation nearing completion
- Installation of mechanical equipment well-advanced
- HDPE pipework in DMS area underway
- Electrical cabling installation well-advanced
Mining Operations
- Construction of haul roads and laydown areas including SMS laydown yard, ROM, COS and
magazine pad completed.
- Drill and blast, excavate, load and haul ramping up with approximately 900,000m3 of ore and waste
mined to date.
- Grade control drilling ongoing.
- 23 pieces of heavy equipment and 5 Drill and Blast and Grade Control drill rigs on site.
Non-Process Infrastructure
- Power plant installed and partly commissioned.
- Fuel farm concrete pads completed and ready to receive fuel tanks.
- New stores shed under construction.
Major Contracts
- Crushing contract awarded to Cape Crushing expect to commence crushing mid-February 2018.
- Fuel and power contracts awarded.
- Non-processing infrastructure engineering well-advanced and construction commenced.
- Catering Services contract awarded to Cater Care.
- Ore concentrate haulage, storage and ship loading contract being finalised.
- Mining, Drill & Blast contract has been awarded.
Key Personnel
- Mr Noel O’Brien appointed Chief Technical Officer - Metallurgy and Processing
Figure 4 | Mining in Stage 1 Pit (light coloured ore in foreground and darker coloured waste in background)
Bald Hill Exploration4
During the quarter, Tawana announced results from extensional step-out drilling and mapping at the Bald
Hill Project that had significantly increased the footprint of the known lithium and tantalum pegmatite
swarm. Tawana completed 87 reverse circulation (RC) holes totalling 12,222m and seven core holes
totalling 750m between August and October 2017. Of these 94 holes, only results from 20 were received in
time to be included in the October 2017 Resource Estimate.
Drilling focused on:
- Eastern high-grade extension, where six holes were completed. Significant results included:
o 17m at 0.93% Li2O from 119m in LRC0685;
o 19m at 0.98% Li2O from 156m, including 9m at 1.26% Li2O in LRC0701;
o 31m at 1.46% Li2O from 143m, including 18m at 1.88% Li2O in LRC0702;
o 35m at 1.74% Li2O from 146m including 15m at 2.11% Li2O in LRC0703.
This mineralised zone remains open to the east and south.
- Boreline South Eastern Extension, with eight holes completed. Significant results included:
o 7m at 1.38% Li2O from 113m in LRC0665;
o 6m at 1.45% Li2O from 150m LRC0675;
o 9m at 0.93% Li2O from 41m and 10m at 1.11% Li2O from 117m in LRC0677.
This mineralised zone remains open to the south.
- Initial lithium drilling at Fenceline prospect, with four holes completed. Significant results included:
o 7m at 1.35% Li2O from 29m in LRC0672;
o 7m at 0.54% Li2O from 65m and 5m at 0.80% Li2O from 82m in LRC0674.
- Deeper pegmatite was detected below the starter pit, with two prior holes partly assayed.
Significant new results included:
o 7.78m at 2.46% Li2O from 234m including 2.78m at 4.27% Li2O in LDD0001;
o 6m at 2.03% Li2O from 135m in LDD0003.
- Notable intercepts from Resource Infill drilling not included in the October Resource Estimate
included:
o 23m at 1.31% Li2O from 115m in LRC0494;
o 11m at 2.01% Li2O from 132m and 10m at 1.00% Li2O from 146m in LRC0495;
o 28m at 1.48% Li2O from 110m including 12m at 2.04% Li2O from 124m in LRC0499;
o 22m at 1.03% Li2O from 83m in LRC0500;
o 29m at 0.90% Li2O from 105m followed by 11m at 1.35% Li2O from 133m in LRC0636;
o 14m at 1.59% Li2O from 133m including 7m at 2.03% Li2O from 138m in LRC0637;
o 31m at 1.50% Li2O from 134m in LRC0638;
o 11m at 1.72% Li2O from 40m and 12m at 1.17% Li2O from 80m in LRC0640;
o 14m at 1.56% Li2O and 296ppm Ta2O5 from 63m including 6m at 2.93% Li2O in LRC0695.
Tawana’s exploration focused on initial grade control, water bore installation and water exploration drilling.
A recently completed water exploration hole (LRC0706) drilled 700m west of the current proposed starter
pit intercepted four pegmatites at shallow depths, three of which contained visible spodumene.
Mapping and Sampling4
Tawana undertook outcrop mapping and sampling on R15/001. Several outcropping spodumene and
tantalum pegmatites were located, highlighting the potential, at depth, for the more important sub-
horizontal pegmatites. Tawana collected 75 rock chip and channel samples over a wide area, and 54
contained visual spodumene or anomalous lithium, tantalum or tin.
For full details of exploration drilling, and mapping and sampling refer to ASX announcement of 6 December
2017 and subsequent addendum to the announcement on 18 December 2017.
Mineral Resource Estimate2
CSA Global Pty Ltd (“CSA Global”) was commissioned by Tawana to update the lithium and tantalum Mineral
Resource estimate for the Bald Hill Project.
The Bald Hill Pegmatite Mineral Resource comprises one large, main, sub horizontal pegmatite body,
striking north-south, with a strike length of 1,230 metres, and a width at its widest point of 1,080 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 2,045 metres, and a total width of 1,800 metres. The
Mineral Resource has a total vertical depth of 245 metres, beginning 20 metres below the natural surface
and plunging gently to the south along its entire strike length.
The Mineral Resource has been 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. Refer ASX announcement of 11 October 2017 for
full details.
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
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 3.9 342 1,700
Inferred 2.5 313 2,950
Total 6.4 330 4,650
Note
1) The tantalum resources reported in Table 3 are additional to those reported in Tables 1 and 2.
Cowan Lithium Project
The 100% owned 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 to 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.
In October, Tawana announced its subsidiary, Mt Belches Pty Ltd, had entered into a binding agreement
with Metalicity Energy Pty Ltd (Metalicity), a 100% subsidiary of Metalicity Limited (ASX: MCT) to acquire
its Lake Cowan Project bordering to the south of Tawana’s Cowan Lithium Project. Refer ASX announcement
30 October 2017. The Lake Cowan Project comprises two approved Exploration Licences (ELs) totalling
410km2 and one application comprising 152km2. Tawana considers the acquisition to be highly strategic as
the Mt Belches-Bald Hill pegmatite belt may extend into the tenements.
Tawana has paid $50,000 and issued 615,384 Tawana shares to shareholders of Metalicity as purchase
consideration for the first two tenements, none of whom are related parties of the Company. A further
153,846 shares will be issued upon transfer of the third tenement.
The addition of the three tenements to Tawana’s Cowan Lithium Project will increase the total area from
159km2 to 721km2. The adjoining Bald Hill Project totals 774km2, meaning together, the Bald Hill and Cowan
projects represent nearly 1,500km2.
Corporate
Funding
As announced last quarter, Tawana agreed 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 was completed in two tranches:
- The first tranche consisted of 14,285,714 shares at an issue price of $0.35, settled on 25 October
2017; and
- The second tranche consisted of 42,857,143 shares at an issue price of $0.35, settled on 15
November 2017.
The placement was within the Company’s 15% placement capacity. Following completion of the placement,
Weier held approximately 11.5% of the issued capital of Tawana. Weier also appointed a nominee to the
Board of Directors of Tawana as part of the placement (see details under the Board and Management
Appointments section of this report below).
The debt will be A$5 million from a nominee of Weier 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 or other suitable security.
Discussions on the binding loan agreement are progressing. The binding loan agreement is expected to be
finalised during February 2018.
Earn in
As announced last quarter, Lithco No. 2 Pty Ltd (Lithco), a 100%-owned subsidiary of 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).
As the conditions in the farm-in agreement entered into between Lithco and AMAL on 23 February 2017
were satisfied, the Bald Hill Joint Venture Agreement came 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.
Cash Position and Movements
As at 31 December 2017, Tawana Resources held $16.4m in cash (September 2017: $12m).
A total of $12.7m was paid towards the construction of the lithium plant and development at the Bald Hill
Mine.
Tawana received $20m as proceeds of its placement to Weier.
For further movements in cash during the quarter, refer to the Appendix 5B.
Board and Management Appointments
During the quarter, Tawana made several key appointments:
Ms Wei (Vicki) Xie was appointed a Non-Executive Director of Tawana. Ms Xie is a representative of German
company Weier Antriebe und Energietechnik GmbH (Weier) and was nominated to the Tawana Board by
Weier as part of an equity funding agreement between Tawana and Weier.
Ms Xie is an accountant with more than 16 years’ experience in Accounting and Finance, as well as in fund
raising, acquisition and private equity investment. Ms Xie has held Chief Financial Officer, accounting and
Company Secretary roles in both China and Australia.
Mr Noel O’Brien was appointed Chief Technical Officer - Metallurgy and Processing. Mr O’Brien, is a
metallurgist and processing expert with experience in multiple lithium projects in Australia and
internationally. Mr O’Brien was recently appointed a non-executive Director of Birimian Ltd., and is a
technical adviser to Kidman Resources Limited, having previously consulted to Galaxy Resources and the
Bikita Minerals Lithium Project. Mr O’Brien has a deep understanding of the lithium market and possesses
processing expertise in smelting, gravity separation, flotation, leaching and solvent extraction.
Mr O’Brien was formerly managing director in South Africa for SNC-Lavalin Inc, a leading global engineering
and construction group, and was responsible for delivering base metal smelter and refinery projects across
Africa. He was Project Director for Tawana on the Mofe Creek iron ore project in Liberia. Mr. O’Brien has a
metallurgical engineering degree from Melbourne University and an MBA from Witwatersrand University.
He is a Fellow of the AusIMM.
Ms Claire O’Brien was appointed Joint Company Secretary of Tawana Resources.
Results of Meeting
At a General Meeting of Tawana shareholders, held on 12 December 2017, all five resolutions put to the
meeting were unanimously passed on a show of hands:
Resolution 1 Ratification of Prior Issue – Tranche 1 Shares
Resolution 2 Ratification of Prior Issue – Tranche 2 Shares
Resolution 3 Issue of Options to Related Party – Robert Vassie
Resolution 4 Issue of Options to Related Party – Mark Turner
Resolution 5 Ratification of Prior Issue – Agent Options.
Tawana Resources NL Tenements (As at 31 December 2017)
Tenement Location Registered Owner Structure and Ownership
Mofe Creek Iron Ore Project
MEL-12029 Mofe Creek Liberia Tawana Liberia Inc 100%
MEL-1223/14 Mofe Ck Sth Liberia Tawana Liberia Inc 100%
Cowan Lithium Project
E15/1205 Western Australia ABEH Pty Ltd Pending, 100%
E15/1377 Western Australia ABEH Pty Ltd Pending, 100%
E15/1446 Western Australia ABEH Pty Ltd Pending, 100%
E15/1502 Western Australia Metalicity Energy Pty Ltd Pending, 100%
E15/1503 Western Australia Metalicity Energy Pty Ltd Pending, 100%
E28/2702 Western Australia Metalicity Energy Pty Ltd Under application, 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 50%
M15/1470 Western Australia Alliance Mineral Assets Limited 50%
M15/1811 Western Australia Alliance Mineral Assets Limited 50%
M15/1305 Western Australia Alliance Mineral Assets Limited 50%
M15/1308 Western Australia Alliance Mineral Assets Limited 50%
G15/28 Western Australia Alliance Mineral Assets Limited 50%
L15/265 Western Australia Alliance Mineral Assets Limited 50%
L15/266 Western Australia Alliance Mineral Assets Limited 50%
L15/267 Western Australia Alliance Mineral Assets Limited 50%
L15/268 Western Australia Alliance Mineral Assets Limited 50%
L15/269 Western Australia Alliance Mineral Assets Limited 50%
L15/270 Western Australia Alliance Mineral Assets Limited 50%
L15/365 Western Australia Alliance Mineral Assets Limited 50%
L15/366 Western Australia Alliance Mineral Assets Limited 50%
P15/5465 Western Australia Alliance Mineral Assets Limited 50%
P15/5466 Western Australia Alliance Mineral Assets Limited 50%
P15/5467 Western Australia Alliance Mineral Assets Limited 50%
P15/5862 Western Australia Alliance Mineral Assets Limited 50%
P15/5863 Western Australia Alliance Mineral Assets Limited 50%
P15/5864 Western Australia Alliance Mineral Assets Limited 50%
P15/5865 Western Australia Alliance Mineral Assets Limited 50%
P15/5866 Western Australia Alliance Mineral Assets Limited 50%
R15/1 Western Australia Alliance Mineral Assets Limited 50%
E15/1058 Western Australia Alliance Mineral Assets Limited 50%
E15/1212 Western Australia Alliance Mineral Assets Limited 50%
E15/1161 Western Australia Alliance Mineral Assets Limited 50%
E15/1162 Western Australia Alliance Mineral Assets Limited 50%
E15/1166 Western Australia Alliance Mineral Assets Limited 50%
E15/1353 Western Australia Alliance Mineral Assets Limited 50%
E15/1066 Western Australia Alliance Mineral Assets Limited 50%
E15/1067 Western Australia Alliance Mineral Assets Limited 50%
Mining Tenements disposed: Nil
Mining Tenements acquired: E15/1502, E15/1503 and E28/2702
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 are, unless expressly stated otherwise, presented on a 100%
of Project basis. Tawana, through its 100% owned subsidiary Lithco No. 2 Pty Ltd has 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 resources update in the ASX announcement
dated 11 October 2017 continue to apply and have not materially changed since it was last reported.
3. Refer to ASX announcement on 14 June 2017.
4. For more information on Drilling Results refer to ASX announcement of 6 December 2017 and subsequent addendum
to the announcement on 18 December 2017. Tawana is not aware of any new information or data that materially
affects the information included in the said announcements.
31January 2018
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 31 December 2017
Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (470) (8,102)
(b) development (16,942) (22,512)
(c) production - -
(d) staff costs (1,098) (3,107)
(e) administration and corporate costs (639) (1,792)
1.3 Dividends received (see note 3) - -
1.4 Interest received 35 86
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other – Security bond reallocation to 949 -
development
1.8 Net cash from / (used in) operating (18,165) (35,427)
activities
Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (21) (271)
(b) tenements (see item 10) (50) (1,050)
(c) investments - -
(d) other non-current assets - -
2.2 Proceeds from the disposal of:
(a) property, plant and equipment - 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 reallocation to 3,342 -
development
2.6 Net cash from / (used in) investing 3,271 (1,317)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 20,000 35,185
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options 634 634
3.4 Transaction costs related to issues of (1,352) (2,160)
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 - -
Consolidated statement of cash flows Current quarter Year to date
$A’000 (12 months)
$A’000
3.9 Other – prepayment from Burwill Holdings - 12,500
Ltd
3.10 Net cash from / (used in) financing 19,282 46,159
activities
4. Net increase / (decrease) in cash and cash
equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 11,987 6,960
4.2 Net cash from / (used in) operating (18,165) (35,427)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing 3,271 (1,317)
activities (item 2.6 above)
4.4 Net cash from / (used in) financing 19,282 46,159
activities (item 3.10 above)
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 16,375 16,375
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 16,375 11,987
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 16,375 11,987
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 166
item 1.2
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 associates Current quarter
$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 177
9.2 Development 14,297
9.3 Production 100
9.4 Staff costs 1,450
9.5 Administration and corporate costs 417
9.6 Other (provide details if material) -
9.7 Total estimated cash outflows 16,441
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 N/A
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining Lake Cowan – Registered 0% 100%
tenements and E15/1502 owner
petroleum tenements Lake Cowan – Registered 0% 100%
acquired or increased E15/1503 owner
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: Company Secretary Date 31 January 2018
Print name: Craig Hasson
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: 31/01/2018 07:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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