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TAWANA RESOURCES NL - Quarterly Activities Report For the quarter to 31 March 2018 and Appendix 5B

Release Date: 30/04/2018 09:32:00      Code(s): TAW       PDF(s):  
Quarterly Activities Report For the quarter to 31 March 2018 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 31 March 2018 and
Appendix 5B
Highlights

Bald Hill Lithium Project, Western Australia
-     Lithium production commenced at Bald Hill in March 2018
      o Bald Hill Mine becomes the first Australian mine to commence spodumene production since 2016
      o Production followed commissioning of a Dense Media Separation circuit at Bald Hill
      o Ramp up to full production run rate commenced
-     Bald Hill plant achieves key milestones
      o DMS primary gravity concentration circuit exceeds name?plate throughput rate
      o High quality concentrates with grades of more than 6% Li2O produced
Corporate
    - Tawana and Alliance Mineral Assets Limited (Alliance) announced an intention to merge via a
      scheme of arrangement
      o Alliance to acquire 100% of Tawana shares
      o Merged group will own 100% of the Bald Hill Project, and elevate its status as a pure-play mid-
          tier lithium company
      o Merged group will trade on ASX and SGX Catalist boards with a pro-forma market capitalisation
          of ~A$446 million1,
      o Simplifies ownership structure and operational management of the Bald Hill asset, providing
          potential for efficiency benefits
      o Merged group will have enhanced financial capacity with a strong pro-forma balance sheet
    - Completion of a fully underwritten A$20 million placement to sophisticated and institutional
      investors
      o Tawana to complete an additional A$5 million conditional non-underwritten placement
    - Tawana to spin out Cowan, Yallari and Mofe Creek assets to create a new exploration-focussed
      company with prospective lithium and iron ore assets
      o Tawana to transfer assets to wholly-owned public company
      o Spinout will allow Tawana to focus on Bald Hill Mine
    - $5 million loan secured from nominee of Weier for development of Bald Hill Mine.


                                                                                                     1
  1
   Calculated by multiplying the number of Alliance Shares post Merger by the closing Alliance share price as at close 4 April
  2018. The exchange rate of A$1 to S$0.99 is applied throughout for purposes of conversion in this announcement.



Bald Hill Project (TAW 50%, AMAL 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. It is located approximately 75km south east of the Mt Marion Lithium
project. The Project comprises four mining leases, one mining lease application, and 20 other licenses
totalling 774km2.


Lithium production commenced
In March 2018, Tawana and JV partner Alliance announced the commencement of lithium production at
the Bald Hill mine, following ore commissioning of the newly constructed Dense Media Separation (DMS)
circuit.

The newly constructed Dense Media Separation Plant (DMS) circuit made significant progress, achieving
nameplate capacity of 162tph in the first two weeks of operation. The DMS circuit is scheduled to be
ramped up to full production rate during the second quarter of 2018.

The DMS completed the first of three performance tests, with:
    • 4,152 tonnes of ore processed over a 24?hour period at an average processing rate of 173tph;
    • Initial sampling of the primary concentrate returning a grade of 7.03% Li2O, 0.34% Fe2O3 and
      1.12% combined Na2O and K2O;
    • the concentrates containing less than 1% mica; and
    • initial sampling of waste material returning a grade of 0.10% Li2O.

These 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 commencement of spodumene production at Bald Hill followed key commissioning milestones for the
project achieved earlier in the quarter, including:
    - Completion of wet commissioning
    - Practical completion achieved by EPC contractor - Primero Group
    - Ferrosilicon media introduced to the plant and stabilised
    - Completion of crusher commissioning and stockpiling of 20,000 tonnes of crushed ore
    - Commencement of first ore feed into the processing plant.



Exploration assets
During the quarter, Tawana announced plans to restructure the Company’s assets to focus on its flagship
Bald Hill project. The restructuring will involve the transfer of the Cowan, Yallari and Mofe Creek assets and
shares in Rakana Consolidate Mines Pty Ltd to a wholly owned public company (“SpinCo”), before
undertaking a capital reduction and distribution by way of in-specie distribution of 85% of all SpinCo shares
to Tawana’s shareholders. Further details on this proposal 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.


Corporate
Proposed Merger of Tawana and Alliance
In April 2018, Tawana announced a proposed merger with Joint Venture partner Alliance, to be
implemented by way of a Tawana scheme of arrangement under the Australian Corporations Act 2001.
Subject to all necessary approvals, the merger would result in Tawana shareholders and Alliance
shareholders holding approximately 50% of the combined Alliance/Tawana group.
Highlights of the merger proposal
    -   The Merged Group will have a pro-forma market capitalisation of approximately A$446m, placing
        the Merged Group on the radar of a greater number of domestic and global institutional investors
    -   Increased scale of the Merged Group will enhance its capital markets profile and liquidity and
        provide greater access to capital with strong potential for re-rating
    -   The Merger simplifies the ownership structure and operational management of the Bald Hill
        Project, with potential for efficiency benefits to the Merged Group
    -   The Merger enhances the financial capacity of the Merged Group and improves the Merged
        Group’s balance sheet, to fund future exploration and growth initiatives
    -   The board of the Merged Group (Merged Group Board) and the Merged Group’s management team
        will be highly experienced, with proven successful track records in exploration, project
        management and open pit mining operations, combined with significant strategic and capital
        markets experience
    -   The Merged Group will be ideally positioned to become a sizeable producer of high demand lithium
        concentrate
The transaction is expected to be completed in Q4 CY2018, subject to regulatory approvals (including SGX).
Following announcement of the merger proposal, Tawana completed a fully underwritten $20 million
placement, including a $7.8 million placement to Weier Antriebe und Energietechnik Gmbh (Weier)
(Tawana’s substantial shareholder). The underwritten placement was strongly supported by domestic and
offshore sophisticated and institutional investors. The underwritten placement issue price of A$0.41 per
share represented a 9.9% discount to Tawana’s last traded price of $0.455 on 4 April 2018.
Tawana also intends to place up to a further A$5 million in gross proceeds to sophisticated and institutional
investors (“Conditional Placement”). This is non-underwritten and conditional on completion of the Alliance
Conditional Placement, being a non-underwritten placement to Burwill Holdings Ltd, an existing substantial
shareholder of Alliance, which is conditional on Alliance Shareholders’ approval, to raise gross proceeds of
up to A$7.8 million. Tawana Board reserves the right to waive this condition.
Canaccord Genuity (Australia) Limited acted as Underwriter, Lead Manager and Bookrunner to the
Underwritten Placement and is acting as Lead Manager and Bookrunner to the Conditional Placement. A
fee of 5% of the total amount raised under the placements will be paid to Canaccord.
The placements will provide additional working capital, enabling continued commissioning of Bald Hill,
resource drilling, capital expenditure including feasibility studies on expansion projects, and other
initiatives at the Bald Hill Mine.
The Underwritten Placement settled on 16 April 2018 and the new Tawana shares were issued on 17 April
2018. Shares under the Underwritten Placement and the Conditional Placement are and will be issued
under Tawana’s existing ASX Listing Rule 7.1 placement capacity.
More details regarding the proposed merger are available in the ASX announcement and presentation
dated 5 April 2018.


Spinout of Assets
During the quarter, Tawana announced plans to restructure the Company’s assets to focus on its flagship
Bald Hill project. The restructuring will involve the transfer of the Cowan, Yallari and Mofe Creek assets to
a wholly owned public company (“SpinCo”), before undertaking a capital reduction and distribution by
way of in-specie distribution of 85% of all SpinCo shares to Tawana’s shareholders.
The assets to be transferred to SpinCo include shares in wholly owned subsidiaries of the Company
holding:
    -       the 100%-owned Cowan Lithium Project in Western Australia;
    -       the 100%-owned Yallari Lithium Project in Western Australia; and
    -       the 100%-owned Mofe Creek Iron Ore Project in Liberia.
The Proposed Transaction will create two distinct companies:
        -     Tawana, with its existing Board and management team focussed on production at the Bald Hill
              Project, positioned as a major supplier of quality lithium; and
        -     SpinCo, with the Cowan, Yallari and Mofe Creek assets as a lithium and iron ore exploration-
              focused company.
Tawana will retain a 15% interest in SpinCo, and will initially provide transitional services to SpinCo. In
addition, Tawana will reserve to itself certain access and water rights from the Cowan Project which will
support operations at Bald Hill.
Full details and timing for the Proposed Transaction are currently being finalised and will be set out in a
notice of meeting to be sent to Tawana shareholders in Q2 2018.
A Shareholders Meeting is expected to be convened in June 2018, with the transaction proposed to be
completed shortly threafter.


Funding
As announced on 5 February 2018, Lithco No.2 Pty Ltd, a wholly-owned subsidiary which holds Tawana’s
50% interest in the Bald Hill Lithium and Tantalum Mine (Bald Hill Project), executed a binding A$5 million
loan agreement with Red Coast Investment Limited, an investment company nominated by Weier Antriebe
und Energietechnik GmbH (Weier). The loan agreement is part of the A$25 million funding package to
support works at the Bald Hill Project, initially announced on 20 October 2017.
The funds are to be used for development at Bald Hill and working capital.
Weier is a 100%-owned subsidiary of lithium industry specialist Jiangte Special Electric Motor Co. Ltd
(JSMC), a company listed on the Shenzhen Stock Exchange.

Tantalum Offtake

In January 2018, Tawana and AMAL executed a non-binding in principle term sheet for the offtake of
tantalum concentrate with leading tantalum industry specialist HC Starck.

HC Starck is a leading international manufacturer of high-tech powders and components made of
technology metals, advanced ceramics and thermal spray powders. HC Starck agreed in principle to
purchase a minimum of 600,000 pounds of tantalum concentrate in aggregate produced at Bald Hill from
April 2018 to 31 December 2020, or all of the standard grade tantalum concentrate produced at Bald Hill
within the period if the delivery is less than 600,000 pounds.

In addition, HC Starck may purchase any other tantalum materials from Bald Hill, including low-grade
concentrate and off spec material etc. as part of the agreement.

Cash Position and Movements
As at 31 March 2018, Tawana Resources held $7.4m in cash (December 2017: $16.4m).
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:

Craig Hasson became Chief Financial Officer. Mr Hasson is a Chartered Accountant with 15 years of
accounting and finance experience with a number of ASX-listed companies in company secretary and
senior finance roles. Mr Hasson was Tawana’s General Manager – Commercial, and had been acting CFO
since November 2017.

Alexei Fedotov was appointed General Manager Commercial & Legal and Joint Company Secretary of the
Company. Mr Fedotov has nearly 15 years of combined private law practice and ASX Top 20 in-house
experience.
Mr Hasson resigned as Joint Company Secretary and Ms Claire O’Brien continues as Joint Company
Secretary of Tawana.

Tim Thomas was appointed Chief Technical Officer – Mining. Mr Thomas has 27 years’ experience in mine
planning, development and operations, including 10 years in senior management positions.

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. The project is located 50km south east of Kambalda in
the Eastern Goldfields of Western Australia. The Project comprises four mining leases, one mining lease
application, and 20 other licenses totalling 774km2. Since entering the farm-in agreement for the Bald Hill
Project in September 2016, Tawana has undertaken the appointment of senior operations and
development personnel, has led the construction on the lithium plant, awarded the engineering,
procurement and construction agreement, delivered a robust prefeasibility study for the Bald Hill mine, and
entered into a binding long-term exclusive lithium concentrate offtake agreement, to bring the Bald Hill
Project up to its current state as a producer of spodumene concentrate.

Tawana Resources NL Tenements (as at 31 March 2018)
 Tenement                   Location            Registered Owner                  Structure and Ownership

 Bald Hill Mine1

 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%

 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%

 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%
    Tenement                      Location               Registered Owner                        Structure and Ownership

    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%

    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%

    M15/1840 (application)        Western Australia      Alliance Mineral Assets Limited         50%

    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      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      Metalicity Energy Pty Ltd               100%2

    E15/1503                      Western Australia      Metalicity Energy Pty Ltd               100%2

    E28/2702                      Western Australia      Metalicity Energy Pty Ltd               100%2

    Yallari Project

    E15/1401 (application)        Western Australia      ABEH Pty Ltd                            100%3

    E15/1526                      Western Australia      Mount Belches Pty Ltd                   100%

1Lithco No. 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.
2Mount Belches Pty Ltd has a beneficial interest in these tenements pursuant to the acquisition described on page 20 of the
Company’s 2017 Annual Report. Registrations in the name of Mount Belches Pty Ltd are pending.
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: Application for M15/1811 was withdrawn (replaced with application for
M15/1840).
Mining Tenements acquired: Alliance Mineral Assets Limited applied for M15/1840 (Lithco No.2 Pty Ltd – 50%
beneficial interest).
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.


Forward Looking Statement
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 and/or Alliance
Mineral Assets Limited. 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 and/or Alliance Mineral
Assets Limited. The forward looking statements/projections are inherently uncertain and may therefore differ
materially from results ultimately achieved.
Tawana Resources NL and/or Alliance Mineral Assets Limited 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 and/or Alliance Mineral Assets Limited or 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 and/or Alliance Mineral Assets
Limited, their 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 announcement or for any errors,
omissions or misstatements or for any loss, howsoever arising, from the use of this announcement.
End Notes

 All figures throught this report regarding the Bald Hill 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.



30 April 2018
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Limited
                                                                                                                      +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 March 2018



 Consolidated statement of cash flows                               Current quarter                Year to date
                                                                                                   (3 months)
                                                                          $A’000                     $A’000
 1.      Cash flows from operating activities
 1.1     Receipts from customers                                                          -                              -
 1.2     Payments for
         (a) exploration & evaluation                                               (135)                            (135)
         (b) development                                                         (12,269)                     (12,269)
         (c) production                                                                   -                              -
         (d) staff costs                                                          (1,077)                      (1,077)
         (e) administration and corporate costs                                     (504)                            (504)
 1.3     Dividends received (see note 3)                                                  -                              -
 1.4     Interest received                                                              23                             23
 1.5     Interest and other costs of finance paid                                         -                              -
 1.6     Income taxes paid                                                                -                              -
 1.7     Other                                                                            -                              -
 1.8     Net cash from / (used in) operating                                     (13,962)                     (13,962)
         activities
Consolidated statement of cash flows              Current quarter       Year to date
                                                                        (3 months)
                                                      $A’000              $A’000
2.     Cash flows from investing activities
2.1    Payments to acquire:
       (a) property, plant and equipment                         (7)                    (7)
       (b) tenements (see item 10)                              (97)                   (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 - Prepayment reallocation to                           -                     -
       development
2.6    Net cash from / (used in) investing                     (104)               (104)
       activities



3.     Cash flows from financing activities
3.1    Proceeds from issues of shares                               -                     -
3.2    Proceeds from issue of convertible notes                     -                     -
3.3    Proceeds from exercise of share options                  254                    254
3.4    Transaction costs related to issues of                    (3)                    (3)
       shares, convertible notes or options
3.5    Proceeds from borrowings                                5,000               5,000
3.6    Repayment of borrowings                                      -                     -
3.7    Transaction costs related to loans and                  (150)               (150)
       borrowings
3.8    Dividends paid                                               -                     -
3.9    Other                                                        -                     -
3.10   Net cash from / (used in) financing                     5,101               5,101
       activities
Consolidated statement of cash flows                      Current quarter        Year to date
                                                                                 (3 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
        period                                                         16,375                 16,375
4.2     Net cash from / (used in) operating                        (13,962)                  (13,962)
        activities (item 1.9 above)
4.3     Net cash from / (used in) investing activities                  (104)                  (104)
        (item 2.6 above)
4.4     Net cash from / (used in) financing activities                  5,101                  5,101
        (item 3.10 above)
4.5     Effect of movement in exchange rates on                             -                       -
        cash held
4.6     Cash and cash equivalents at end of                             7,410                  7,410
        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                                                   7,410                 16,375
5.2     Call deposits                                                       -                       -
5.3     Bank overdrafts                                                     -                       -
5.4     Other (provide details)                                             -                       -
5.5     Cash and cash equivalents at end of                             7,410                 16,375
        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                       155
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)                                         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.
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                                                                 465
9.2    Development                                                                              9,907
9.3    Production                                                                              13,980
9.4    Staff costs                                                                              1,149
9.5    Administration and corporate costs                                                         533
9.6    Other (Capital raising, merger and spinout costs)                                        1,749
9.7    Total estimated cash outflows                                                           27,783
    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             M15/1811                interest,
              petroleum tenements       (application)           registration of
              lapsed, relinquished                              transfer
              or reduced                                        pending

    10.2      Interests in mining       Western Australia,      Beneficial         0%             50%
              tenements and             M15/1840                interest
              petroleum tenements       (application)           pursuant to JV
              acquired or increased                             agreement



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 30 April 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: 30/04/2018 09:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.