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Quarterly Activities Report For the quarter to 30 June 2018
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 June 2018
PLEASE NOTE: ALL GRAPHICS HAVE BEEN REMOVED FOR SENS PURPOSES. PLEASE REFER TO TAWANA WEBSITE
FOR THE COMPLETE ANNOUNCEMENT
Highlights
Bald Hill Mine, Western Australia, Operations
Production
- Production of 19,218wmt(1) (approximately 18,800dmt) of spodumene concentrate
- Sales of 9,012wmt (8,859dmt) of spodumene concentrat
Average shipped concentrate grade of 6.14% Li2O, 0.55% Fe, low K, Na and mica
- Recovery of 367wmt of tantalum pre-concentrate from the lithium circuit containing 26,480lbs
of Ta2O5
- Plant average throughput rate of 172tph for the quarter. July to date average of 206tph
compared to nameplate of 161tph
- Mining of a total of 2.36Mm3 of material including 212,000t of lithium ore at 1.01% Li2O and
86,000t of tantalum ore for the June quarter
- Processing of 240,504t of ore at 0.79% Li2O during the June quarter; feed grade for July to date
0.91% Li2O
- The Project is targeting to produce 60,000 to 75,000 tonnes of spodumene concentrate for the 6
months between July and December 2018
June Resource/Reserve Upgrade(2)
- Lithium Resources increase to 26.5Mt at 1.0% Li2O (using 0.3% Li2O cut-off), including lithium
Indicated Resources of 14.4Mt at 1.02% Li2O
- Lithium Ore Reserve of 11.3Mt at 1.0% Li2O and 160 ppm Ta2O5 – representing an increase of
105% in contained lithium from the July 2017 reserve estimate
- Tantalum Ore Reserve of 2.0Mt at 313ppm Ta2O5 – an increase of 43% from the July 2017 reserve
estimate
Exploration
- Infill drilling commenced with a total of 70 holes completed for 11,655m. Infill is targeting
approximately 8.8Mt of additional Inferred Resources reported to the preferred Indicated +
Inferred Whittle (optimization) pit shell
- Limited lithium and water exploration drilling in 2018 has totalled 30 holes for 4,773m and has
intersected significant mineralisation in extension to and below the current resource
Corporate
Proposed merger with Alliance Mineral Assets Limited (“Alliance”)
- Alliance received a “no objection” ruling from the Singapore Exchange (SGX) regarding the Merger
- Merger on track to be implemented during calendar Q4 2018
Demerger of non-core assets to form Cowan Lithium Limited
- Shareholders approved disposal of projects, capital reduction and amendment to constitution at a
General Meeting on 6 July 2018
- Cowan Lithium shares were distributed to eligible shareholders on 18 July 2018
Funding
- Institutional share placement completed in July 2018 to raise approximately $4.9m
- New $15m debt facility being negotiated to support working capital and ongoing capital
expenditure
Bald Hill Mine (Tawana 50%, Alliance 50%)
The Bald Hill Lithium and Tantalum Mine (Bald Hill Mine or the Project) is located 50km south east of
Kambalda in the Eastern Goldfields region of Western Australia. It is located approximately 75km
south east of the Mt Marion Lithium project. The Project comprises mining tenure totalling 774km2.
Mining
Mining during the June quarter continued at a rate of approximately 800,000bcm per month for a
total of 2.36Mm3 of material including 211,978wmt of lithium ore at 1.01% Li2O and 285 ppm Ta2O5.
An additional 86,298wmt of low grade tantalum ore grading 285ppm Ta2O5 was also mined. The strip
ratio for the June quarter was 20:1, and will continue to remain high for the coming nine months
until the completion of Stage 2 pre-strip.
Source Units June Qtr -Total Apr-18 May-18 Jun-18
Ore BCM's bcm 112,557 24,916 33,422 54,219
Waste BCM's bcm 2,244,198 786,059 766,296 691,843
Total Mined BCM's bcm 2,356,755 810,975 799,718 746,062
Strip Ratio W:O 19.9 31.5 23 12.8
Ore Tonnes (Lithium) wmt 211,978 50,469 68,407 93,102
Ore Tonnes (Tantalum) wmt 86,298 15,558 20,161 50,578
Mined Lithium Grade %Li2O 1.01% 0.82% 1.00% 1.13%
Ore Grade (Tantalum) ppm 285 261 300 286
Processing
Processing ramp up during the quarter neared completion with nameplate throughputs achieved.
During the quarter, a total 240,504t of ore at 0.79% Li2O were processed of which 60,629 tonnes of
fines were stockpiled and 179,875t grading 0.89% Li2O were passed through the DMS circuit for
recovery of 17,403wmt of spodumene concentrate at a recovery of approximately 72% (net 59%,
taking into account unprocessed fines and middlings). Recoveries for July have been 79% (net 65%),
in line with expectations.
Overall, operational metallurgical performance of the DMS circuit during ramp-up has been
consistent with the original test work, with high grade concentrates being produced and high
recoveries to primary concentrates and middlings being achieved. The plant has already achieved
daily feed rates of up to 230tph compared to the design feed rate of 161tph and opportunities for
increasing the throughput are currently being assessed. Optimisation of the plant will continue with
further modifications planned to achieve an expected average throughput rate of up to 240tph.
Construction of a second DMS circuit is also being assessed in addition to the proposed fines circuit.
Tantalum pentoxide recovery into pre-concentrate from the DMS spirals commenced during the
quarter. A total of 367wmt of tantalum pre-concentrate containing 26,480lbs of Ta2O5 was
recovered from the lithium circuit. Work has commenced at Nagrom Mineral Laboratory in Perth to
upgrade pre-concentrates: the initial parcel of 22.5wmt resulted in 91% recovery of tantalum to a
3.04t low impurity concentrate containing 25.7% Ta2O5.
As at the end of the Quarter, Tawana’s share of spodumene concentrate stocks totalled 5,103wmt and
tantalum concentrates containing approximately 13,240lbs of Ta2O5.
Table 1 | Stage 1 DMS Commissioning and Ramp-up throughput rates
Commissioning and Target (t) Actual (t) Average Operating Net
Ramp up Period Throughput Throughput tph hours utilization
%
14 March - 13 April 22,509 50,042 148.2 337.6 45
14 April - 13 May 45,015 75,612 157.0 481.7 67
14-May - 13 June 82,800 92,550 180.3 513.4 69
14 June - 13 July 96,716 102,698 197.6 519.8 72
Note - Nameplate target is 161tph and 100,000t/month average.
The initial results were achieved on low-grade commissioning ore. The plant performance is consistent
with results achieved in test work in the development and design phase of the project.
The Bald Hill JV is targeting to produce 60,000 to 75,000 tonnes of spodumene concentrate for the 6
months between July and December 2018. This is in line with the targeted average spodumene
concentrate production of 155,000 tonnes per annum (taking into account ramp up considerations) as
previously announced to the ASX on 11 July 2017.
Costs
Tawana’s share of costs and revenue for the Project for the Quarter have been capitalised. Tawana’s
share of capital expenditure payments totalling $17.8m was significantly less than the June quarter
forecast payments of $23.9m, principally due to reduced mining pre-strip and deferred expenditure on
lower priority sustaining capital projects. Mining pre-strip and sustaining capital projects will continue
over the next three quarters concurrent with commercial production.
Mining costs were approximately $3.15 per tonne of material mined. Crushing and processing costs
were approximately $38 per tonne of ore feed. Tawana’s share of site administration and other site
costs for the Quarter were approximately $500,000 per month.
Resources
The Bald Hill JV commissioned CSA Global Pty Ltd (CSA Global) to update the Mineral Resource estimate for the
Project during the Quarter (Refer ASX announcement 6 June 2018).
The Mineral Resource was classified as Indicated and Inferred in accordance with the JORC Code (2012 Edition)
on a qualitative basis. The resource was cut to the current mine survey as at 30 April 2018; ore and
concentrate stockpiles have been excluded from totals.
Table 2 | Bald Hill Project, Resources above 0.3% Li2O cut-off
Grade Contained Grade Contained
Resource Tonnes
Li2O Li2O Ta2O5 Ta205
Category (Mt)
% Tonnes ppm (,000) Lbs
Indicated 14.4 1.02 147,200 168 5,300
Inferred 12.1 0.90 108,000 123 3,300
Total 26.5 0.96 255,200 149 8,600
Table 3 |Bald Hill Project, Tantalum Resources below 0.3% Li2O and above 200ppm Ta2O5 cut-offs
Resource Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Indicated 3.0 0.16 4,700 333 2,200
Inferred 1.4 0.15 2,200 339 1,100
Total 4.4 0.16 6,900 336 3,300
Note: The tantalum resources reported in Table 2 are additional to those reported in Table 1.
Compared to the prior estimate (refer ASX announcement 11 October 2017), the revised Mineral Resource
estimate above 0.5% Li2O is essentially the same total size but Indicated resources have increased by 67% as a
result of infill drilling and lowering the cut-off due to plant performance. The latest Mineral Resource estimate
includes a low-grade component grading between 0.3 and 0.5% Li2O due to the metallurgical performance of
low-grade or feed ore to the Stage 1 DMS.
Reserves
A Reserve upgrade and life of mine increase were also announced during the Quarter as part of the estimated
Resource update (Refer ASX announcement 6 June 2018).
An ultimate pit was designed using a conservative optimal pit shell derived from JORC Mineral Resource
Indicated material only. All Inferred Mineral Resources within the pit design are reported as waste during the
Reserve estimation.
Pit shells created from Whittle optimisations inclusive of Inferred Mineral Resources were approximately 60%
larger than those used for the pit design. These shells are only used as a guide for infill drilling.
Table 4: Bald Hill Mine - Reserves above 0.3% Li2O
Reserve Tonnes Grade Contained Grade Contained
Category (Mt) Li2O Li2O Ta2O5 Ta205
% Tonnes ppm (,000) Lbs
Proven - - - - -
Probable 11.3 1.01 114,100 160 4,000
Total 11.3 1.01 114,100 160 4,000
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5% at 0% Li2O and 0ppm Ta2O5
2) Reserves have been cut to the April 2018 end of month mine survey
Table 5: Bald Hill Project - Reserves below 0.3% Li2O and above 200ppm Ta2O5 cut-offs, April 2018
Reserve Tonnes Grade Contained
Category (Mt) Ta2O5 Ta205
ppm (,000) Lbs
Proven - - -
Probable 2.0 313 1,400
Total 2.0 313 1,400
Notes: 1) Allows for mining ore loss of 7.5% and dilution of 7.5%
2) Reserves contained in Table 4 are additional to those reported in Table 3.
3) Reserves have been cut to the April 2018 end of month mine survey; ore stockpiles and concentrates are excluded.
Safety performance
Safety of its people is a priority for Tawana. Using the Total Recordable Injury Frequency Rate
(TRIFR) as one of our methods to monitor safety performance, we are pleased to report that during
the Quarter the Project maintained a TRIFR of 0.00.
Exploration and Reserve Drilling
There are several opportunities for increasing mine life through exploration and infill reserve drilling.
- Approximately 8.8Mt to 12.2Mt of additional Inferred Resources reported to the Indicated + Inferred
Whittle shells, highlighting potential for Reserve growth with the completion of the current infill drilling
program. A total of 70 drill holes totalling 11,655m have been completed to date in 2018.
- Limited lithium and water exploration drilling in recent months has been successful in intersecting
significant lithium mineralisation outside the current Resource. Intercepts include:
Northern Extension
21m at 1.50% Li2O from 169m from a 22m wide pegmatite in an isolated water exploration drill hole
(LRC0707), 600m north of the current pit. A second water exploration drill hole, LRC0708 drilled 400m
to the west, also intercepted a 6m wide pegmatite from 41m and a 17m wide pegmatite from 128m
which included 9m at 0.33% Li2O. A third water exploration drill hole (LRC0706) located 1.2km south of
LRC0708 intercepted a 13m wide pegmatite from 23m and an 8m wide pegmatite from 43m and
included 6m at 0.68% Li2O from 24m and 4m at 1.0% Li2O from 45m (Refer ASX announcement on 6
June 2018).
Eastern Extension
LRC0729 - 33m at 1.33% Li2O from 228m incl. 20m at 1.78% Li2O;
LRC0730 - 24m at 1.51% Li2O from 200m;
LRC0755 - 29m at 1.31% Li2O from 174m;
LRC0754 - 28m at 1.28% Li2O from 179m incl. 11m at 1.73% Li2O;
For details of the intercepts refer to ASX announcement on 6 June 2018.
Visit to Jiangte Special Electric Motor Co. Ltd. facilities
In early June Tawana management visited the Jiangte Special Electric Motor Co. Ltd. (JSEM) facilities
in Yuan Zhou District, Yichun, Jiangxi. JSEM have a joint venture with the Burwill group which holds
the offtakes for lithium concentrates from the Bald Hill Mine.
The facilities include an operating convertor producing lithium carbonate from lepidolite mica feed and
three large convertors are currently in an advanced state of construction on a 30ha site. Two of the
large convertors under construction are for spodumene concentrate feed and, when fully operational,
should be capable of processing 20,000t per month of spodumene concentrate. Spodumene
concentrate storage capability of the site is 45,000t with a preferred minimum inventory of 20,000t.
Demerged exploration assets
During the Quarter, the exploration projects set out below were subject to a Demerger which
completed on 18 July 2018. As a result of the Demerger, the Company no longer has a direct interest
in these projects, but has exposure to the projects through its 15% interest in Cowan Lithium. Further
details on the Demerger are provided in the Corporate section of this report. No substantive
exploration or development activities were conducted on these projects during the quarter.
Cowan Lithium Project
The Cowan Lithium Project is located 50km south east of Kambalda in the Eastern Goldfields of
Western Australia. The Cowan Project covers a 26km strike of two rare earth pegmatite belts over
721km², which are adjacent to the Bald Hill Mine.
The Cowan Project comprises several underexplored tenements which contain a vast number of
pegmatites which have been discovered through limited exploration mapping and drilling: some of
which contain spodumene.
Yallari Project
The Yallari Project is 6km west of the Mt Marion lithium mine in Western Australia, and 75km
northwest of Tawana’s Cowan Project.
The tenement contains numerous pegmatites in the same host-rock sequence as Mt Marion and is
located close to the Depot Hill granodiorite.
Limited exploration for lithium has been undertaken to date, however the project is considered
moderately prospective.
Mofe Creek Project
The Mofe Creek iron ore project is located in West Africa, within one of Liberia’s historic iron ore
mining districts. During the quarter, an option was granted to Al Rawda Resources Limited
(Registration No. 143 433) (ARRL) to acquire the Mofe Creek project in consideration for $500,000
cash and a 1.25% royalty on the FOB value of iron ore product shipped (Mofe Creek Option). ARRL
also agreed to reimburse exploration expenditure to be incurred on the project during the option
period. The Mofe Creek Option expires on 9 November 2018.
Corporate
Proposed Merger of Tawana and Alliance
On 5 April 2018 Tawana announced a merger with Alliance by way of a members’ scheme of
arrangement (Scheme) pursuant to which, Alliance will acquire all Tawana shares and Tawana
shareholders will receive 1.1 new Alliance shares for every 1 Tawana share held at the Scheme
record date (Merger). Tawana and Alliance have entered into a Scheme Implementation Agreement
(SIA) (as amended on 9 July 2018) which documents the terms of the Merger.
Tawana and Alliance are continuing to progress the transaction.
Demerger of Assets
In the March quarter, Tawana announced a proposed demerger of Tawana’s non-core assets, being
the Cowan and Yallari lithium projects in Western Australia, the Mofe Creek Iron Ore Project in Liberia
and certain South African interests to a new public company, Cowan Lithium Limited (Cowan
Lithium).
The Demerger included a capital reduction and in-specie distribution of 85% of the shares in Cowan
Lithium to eligible Tawana shareholders.
The Demerger was approved at a General Meeting held on 6 July 2018, and shares in Cowan Lithium
were distributed on 18 July 2018. Tawana retained a 15% interest in Cowan Lithium.
Tawana is seeking a class ruling from the Australian Taxation Office (ATO) on behalf of Shareholders
to confirm the taxation outcomes of the Demerger. Tawana has no reason to believe that the ATO will
not issue a favourable ATO Ruling.
Following Board and Shareholder approval, on the 18 July Tawana implemented the capital reduction
and the Demerger contemplated in the Notice of Meeting issued 1 June 2018 and distributed shares in
Cowan Lithium to eligible Tawana shareholders on the same day.
Funding
Susequent to June Quarter end, on 6 July 2018 Tawana completed a placement of 12,195,122 fully
paid ordinary shares to an institutional investor at a price of $0.40 per share to raise gross proceeds of
approximately $4.9 million.
Tawana is negotiating a new $15m debt facility to support working capital requirements and ongoing
capital expenditure requirements for the Bald Hill Project. Indicative offers have been received for a
$15m debt facility and these are being advanced.
Results from Annual General Meeting
At Tawana’s Annual General Meeting held in Perth on 31 May 2018, the following resolutions passed
on a poll:
- Resolution 1: Adoption of Remuneration Report
- Resolution 2: Re-Election of Director – Robert Benussi
- Resolution 3: Election of Director – Robert Vassie
- Resolution 4: Election of Director – Mark Turner
- Resolution 5: Election of Director – Wei (Vicki) Xie
- Resolution 6: Ratification of prior issue of shares – Share Placement
- Resolution 7: Approval of issue of shares – Conditional Placement.
Cash Position and Movements
As at 30 June 2018, Tawana Resources held $11.6m in cash (March 2018: $7.4m).
For further movements in cash during the Quarter, refer to the Appendix 5B.
Tantalum Offtake
Negotiations for the offtake of tantalum concentrate from Bald Hill progressed during the Quarter.
About Tawana
Tawana Resources NL is a resources foccused ASX and JSE-listed company located in Perth,
Western Australia.
Tawana has a 50% interest in the Bald Hill Project.
About the Bald Hill Mine
The Bald Hill Mine is in the southeast of the Goldfields? Esperance Region of Western Australia,
approximately 105km south? southeast of Kalgoorlie. Kalgoorlie is the main hub in the region
providing access to the Project which can be accessed from Perth by air, rail and road.
The principal road access to the Project is via the (sealed) Coolgardie? Esperance Highway (National
Highway 94), and then the Binneringie Road from Widgiemooltha, a distance of 65km of unsealed
shire road. The Project is approximately 350km by road from the Port of Esperance.
The Mine currently consists of an open pit, a Dense Media Separation and Spiral Circuits, waste rock
dumps, stores, a camp (including administrative and living quarters) and associated infrastructure.
Lithium concentrate is hauled via Binneringie Road to the Port of Esperance. Tantalum concentrates
are planned to be packed into 205L drums and/or bulka? bags and exported via Fremantle in standard
shipping containers.
Each of Tawana and Alliance executed separate offtake agreements in April 2017 (and subsequent
variations thereto) for the supply of lithium concentrate from Bald Hill over a five? year term with
pricing for 2018 and 2019 of US$880/t (A$1,173) (FOB Esperance) for 6% Li2O concentrates. The
offtake agreement provides for an attractive fixed price in US dollars per dry metric tonne for the first
2 years of production, and shipping costs are borne by the offtake party. Refer to ASX
announcement of 26 April 2017 and SGX announcement of 4 May 2017.
Tawana Resources NL Mining Tenements (as at 30 June 2018)
Structure and
Tenement Location Registered Owner
Ownership
Bald Hill Project1
M15/400 Western Australia Alliance Mineral Assets Limited 50%
M15/1470 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%
M15/1840 (application) Western Australia Alliance Mineral Assets Limited 50%
G15/28 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%
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%
Structure and
Tenement Location Registered Owner
Ownership
E15/1066 Western Australia Alliance Mineral Assets Limited 50%
E15/1067 Western Australia Alliance Mineral Assets Limited 50%
E15/1492 Western Australia Alliance Mineral Assets Limited 50%
E15/1493 Western Australia Alliance Mineral Assets Limited 50%
E15/1555 Western Australia Alliance Mineral Assets Limited 50%
E15/1556 Western Australia Alliance Mineral Assets Limited 50%
Mofe Creek Iron Ore Project2
MEL-12029 Mofe Creek Liberia Tawana Liberia Inc 100%
MEL-1223/14 Mofe Ck
Liberia Tawana Liberia Inc 100%
Sth
Cowan Lithium Project2
E15/1205 Western Australia Mount Belches Pty Ltd 100%
E15/1377 Western Australia Mount Belches Pty Ltd 100%
E15/1446 Western Australia Mount Belches Pty Ltd 100%
E15/1502 Western Australia Mount Belches Pty Ltd 100%
E15/1503 Western Australia Mount Belches Pty Ltd 100%
E28/2702 Western Australia Mount Belches Pty Ltd 100%
Yallari Project2
E15/1401 (application)3 Western Australia ABEH Pty Ltd Pending, 100%
E15/1526 Western Australia Mount Belches Pty Ltd 100%
1 LithcoNo. 2 Pty Ltd has a 50% beneficial interest in these tenements pursuant to the Farm-In Agreement
described on page 12 of the Company’s 2017 Annual Report. Registrations in the name of Lithco No.2 Pty
Ltd are pending.
2 100% legal and beneficial interest in the entities holding the interests in the tenements comprising the
Mofe Creek Project, Cowan Lithium Project and Yallari Project have been transferred to Cowan Lithium
Limited on 18 July 2018.
3Mount Belches Pty Ltd has a beneficial interest in this tenement application pursuant to the acquisition
described on page 21 of the Company’s 2017 Annual Report. Tenement is required to be transferred to
Mount Belches Pty Ltd following its grant.
Mining Tenements disposed: P15/5866 was amalgamated into E15/1353.
Mining Tenements acquired: During the Quarter, Mount Belches Pty Ltd became the legal registered
holder of 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
Exploration
The information in this announcement that relates to Exploration Results is based on and fairly represents
information and supporting documentation compiled by Mr Gareth Reynolds, who is an employee of
Tawana. Mr Reynolds is a member of The Australasian Institute of Geoscientists. Mr Reynolds has
sufficient experience relevant to the style of mineralisation under consideration and to the activity which he
is 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 Reynolds consents to the
inclusion in this report of the matters based on his information in the form and context in which it appears.
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.
Metallurgical
The information in this release that relates to metallurgy and metallurgical test work has been reviewed by
Mr Noel O’Brien, FAusIMM, MBA, B. Met Eng. Mr O’Brien is a part time employee of the company. 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”. Mr O’Brien consents to the
inclusion in this report of the contained technical information in the form and context as it appears.
Forward Looking Statements
This announcement may contain certain forward looking statements and projections, including
regarding estimated resources and reserves, production and operating costs profiles, capital
requirements and strategies and corporate objectives. Such forward looking statements/projections
are estimates for discussion purposes only and should not be relied upon as representation or
warranty, express or implied, of Tawana Resources NL. 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 forward looking statements, and disclaims any obligation to update or revise any
forward looking statements based on new information, future events or otherwise except to the extent
required by applicable laws. While the information contained in this announcement has been prepared
in good faith, neither Tawana Resources NL nor any of their 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
announcement. Accordingly, to the maximum extent permitted by law, none of Tawana Resources NL,
its directors, employees or agents, advisers, nor any other person accepts any liability whether direct
or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of, the accuracy
or completeness of the information or for any of the opinions contained in this announcement or for
any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this
announcement.
End Note
All figures throught this report regarding the Project are, unless expressly stated otherwise, presented
on a 100% basis. Tawana, through its 100% owned subsidary Lithco No. 2. Pty Ltd has a 50%
interest in the project.
31 July 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 30 June 2018
Consolidated statement of cash flows Current quarter Year to date
(6 months)
$A’000 $A’000
1. Cash flows from operating activities
1.1 Receipts from customers 1 - -
1.2 Payments for
(a) exploration & evaluation (79) (214)
(b) development 1 (13,793) (26,062)
(c) production - -
(d) staff costs (1,010) (2,087)
(e) administration and corporate costs (594) (1,098)
1.3 Dividends received (see note 3) - -
1.4 Interest received 62 85
1.5 Interest and other costs of finance paid (147) (147)
1.6 Income taxes paid - -
Consolidated statement of cash flows Current quarter Year to date
(6 months)
$A’000 $A’000
1.7 Other – Merger and demerger costs (432) (432)
1.8 Net cash from / (used in) operating (15,993) (29,955)
activities
Note 1: Cash receipts from customers of $4,309,465 received during the quarter have been offset
against associated development cash outflows for the current period which precedes commercial
production.
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (29) (36)
(b) tenements (see item 10) - (97)
(c) investments - -
(d) other non-current assets - -
2.2 Proceeds from the disposal of:
(a) property, plant and equipment - -
(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 – Contributions received from Joint 397 397
Operation Partner not expended
2.6 Net cash from / (used in) investing 368 264
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 20,000 20,000
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options 1,131 1,385
3.4 Transaction costs related to issues of (1,220) (1,223)
shares, convertible notes or options
3.5 Proceeds from borrowings - 5,000
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and (50) (200)
borrowings
3.8 Dividends paid - -
3.9 Other - -
3.10 Net cash from / (used in) financing 19,861 24,962
activities
Consolidated statement of cash flows Current quarter Year to date
(6 months)
$A’000 $A’000
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of 7,410 16,375
period
4.2 Net cash from / (used in) operating (15,993) (29,955)
activities (item 1.9 above)
4.3 Net cash from / (used in) investing activities 368 264
(item 2.6 above)
4.4 Net cash from / (used in) financing activities 19,861 24,962
(item 3.10 above)
4.5 Effect of movement in exchange rates on (32) (32)
cash held
4.6 Cash and cash equivalents at end of 11,614 11,614
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 11,614 7,410
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 11,614 7,410
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 1.2 145
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 5,000 5,000
8.2 Credit standby arrangements - -
8.3 Other (please specify) 11,700 11,700
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.
8.1 In March 2018, the Company drew down in full on a $5m unsecured loan facility with Red Coast
Investment Limited, an investment company nominated by Weier Antriebe und Energietechnik
Gmbh. The loan agreement formed part of a $25m funding package to support works at the Bald
Hill Project. Interest is payable quarterly in arrears at a rate of 11% with a maturity and single
repayment date of 31 December 2019.
8.3 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 384
9.2 Development 1,081
9.3 Production 20,027
9.4 Staff costs 1,008
9.5 Administration and corporate costs 532
9.6 Other (Capital/debt raising, merger and spinout costs) 1,400
9.7 Total estimated cash outflows 24,432
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 Western Australia, Beneficial 50% 0%
tenements and P15/5866 interest
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining Western Australia, Beneficial 100% 100%
tenements and E15/1502 interest
petroleum tenements E15/1503 Legal interest 0% 100%
acquired or increased
E28/2702
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 July 2018
Print name: Alexei Fedotov
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: 31/07/2018 12:05:00 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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