Lithium producer Tawana’s share price dips on shelved ASX listing
Mining & Resources
Jonathan Paredes of Mexico dives from the 27.5 metre platform in the 2015 Red Bull Cliff Diving series in Italy. Pic:Getty
Lithium producer Tawana Resources sank 12 per cent on Wednesday after revealing a merger with its partner in the Bald Hill project would not result in a new ASX listing anytime soon.
Tawana and Alliance Mineral Assets began production at the West Australian Bald Hill project in March, marking the first new lithium concentrate production in Australia since 2016.
In total it took just nine months for the lithium and tantalum project to get off the ground.
Tawana (ASX:TAW) revealed in April that it would merge with Alliance to consolidate full ownership of the Bald Hill project under one roof.
Alliance is a Singapore-listed company and the plan was for the merged company to retain the Singapore listing and seek a second listing on the ASX.
But Tawana told investors yesterday that it would not be able to meet the local bourse’s “emphasis of matter” requirement by the deadline.
The “emphasis of matter” requirement relates to the merged company being able to prove it can continue as a going concern.
Tawana shares closed Wednesday at 25c – a 12.3 per cent drop. Alliance shares, meanwhile, dipped 5.7 per cent to 25c.
The stock was in suspension at 25c on Thursday morning.
“The decision to waive the ASX listing condition was not taken lightly by the board,” Tawana boss Mark Calderwood said.
“However, the board considers that the merger is an outstanding opportunity for
shareholders to continue to participate in the future benefits of the Bald Hill mine under
the simplified ownership and operational structure and a larger entity.
“Following implementation of the merger, Alliance shares will be able to be traded on SGX-ST which has strong liquidity, particularly in the metals and mining sectors, whilst a dual listing is pursued in due course.”
Mr Calderwood told Stockhead shortly after the project come online that it is “possibly one of the best concentrates to leave WA”.
Tawana was expecting its lithium to fetch a premium price.
The company is now in a trading halt until it releases an announcement regarding its proposed debt funding package.
Stockhead is seeking comment.