In a sign that confidence may be returning to the lithium sector, two junior miners have this week launched prospectuses worth a total of $13.5 million ahead of ASX listings later this year.

Cowan Lithiumwhich was spun out of Tawana Resources (ASX:TAW) earlier this year — is looking to raise $8 million selling shares at 20c each.

The Perth-based company holds two main lithium projects, Cowan and Yallari, in the Eastern Goldfields of Western Australia plus an iron ore project in Liberia.

The projects were spun out because they were “not receiving the management focus and budgetary allocation which they warrant”, the prospectus says. Tawana is the major shareholder and will remain so after listing.

The Cowan project covers about 10 sq km of a pegamite belt known as Mt Belches-Bald Hill. Pegmatites are the primary source of lithium.

The Yallari project, 25km southeast of Coolgardie, is more speculative and has had limited previous exploration.

The bulk of the proceeds will be used to explore the Cowan site and begin analysis of Yallari.

Executive director Michael Naylor has had roles at Bellevue Gold (ASX:BGL), First Cobalt Corporation (ASX:FCC), Cygnus Gold (ASX:CY5), Blackstone Minerals (ASX:BSX) and Teranga Gold (ASX:TSE). He stands to get 1.2 million options and 300,000 performance rights.

Chairman Mark Calderwood, who is also chairman of Manas Resources (ASX:MSR), will get 3.2 million options and 800,000 performance rights.

Another director, Mark Turner of RTG Mining (ASX:RTG), will get 400,000 options and 100,000 performance rights.

After listing Cowan Lithium will have up to 103 million shares on issue for a market cap of about $20 million at the 20c offer price.

The offer is open from August 30 to September 27 and the stock is due to list October 8 under the code COW.

It’s being managed by Canaccord Genuity and you can find the prospectus here.

Golden State Mining

Golden State, a Perth-based explorer looking for gold and lithium in WA, plans to raise $4.5 million to $5.5 million ahead of an ASX listing in October.

Golden State’s projects are located at Cue, a premier gold mining district in Western Australia’s Murchison region, Yule in the Pilbara and Four Mile Well near Laverton in the Eastern Goldfields.

Golden State says they have “significant potential” despite a lack of exploration.

The majority of the funds will be held as working capital, with the Cue project to receive the biggest share of remaining money.

Managing director Michael Moore was previously chief of Montezuma Mining (ASX:MZM) and is a director of Variscan Mines (ASX:VAR). He will be paid $180,000 and get 1 million shares and 1.5 million options, exercisable at 25c three years after listing.

Director Greg Hancock is chairman of Ausquest (ASX:AQD), BMG Resources (ASX:BMG), Zeta Petroleum (ASX:ZTA), Strata-X Energy (ASX:SXA) and Cobra Resources.

Golden State will have up to 39 million shares on issue for a market cap of about $8 million at its 20c IPO price.

The stock is due to trade on the ASX from October 12 under the code GSM.

The offer is open from September 3 – 28. It’s being managed by Hartleys and DJ Carmichael and the prospectus can be found here.