Tawana is spinning off assets to focus on its flagship lithium project
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Tawana Resources is spinning out its non-core lithium and iron ore assets to focus more heavily on its flagship Bald Hill in Western Australia.
Tawana began production at Bald Hill earlier this month, marking the first new lithium concentrate production in Australia since 2016.
Tawana will now spin its Cowan lithium project which is next door to Bald Hill, its Yallari lithium project in Western Australia and its Mofe Creek iron ore project in Liberia.
The assets wil be placed into a private company.
Tawana (ASX:TAW) shareholders will received 85 per cent of the shares in the new company with Tawana owning the remainder.
The asset reduction is part of a restructure that will also see share cancellations or buy-backs as part of a capital reduction.
“Tawana’s primary focus is to ensure effective ramp‐up of production [at Bald Hill] and to ensure exploration activities are focused “near mine”,” said Tawana managing director Mark Calderwood.
Only 5 per cent of Bald Hill had been explored, he said.
“The board of Tawana recognises that the value of the Cowan, Yallari and Mofe Creek projects may be better recognised by the market by de‐merging these assets to form a new standalone exploration company.”
Tawana shares opened down 1 per cent at 44c.