The funding from Jiangte Special Electric Motor Co, which comprises $20 million in equity and $5 million in debt, means Tawana is now all set to begin production next quarter. The equity was priced at 35c per share, a 5.4% premium to Tawana’s recent trading levels. Tawana also said it had renegotiated a lower repayment rate for the repayment of a $12.5 million pre-payment by offtaker Burwill Commodity – from 20% per shipment to 15% - the result of which means increased cashflow will be heading Tawana’s way. Burwill has a downstream lithium joint venture with Jiangte, with the Chinese company described as a “veteran special electric motor manufacturing company … (that) has been actively participating in the development of the new energy - lithium battery industry in recent years”. Jiangte owns Weier Antriebe und Energietechnik, a German company said to be an electric motor specialist formed in 1945. Tawana owns 50% of Bald Hill, with its interest being earnt from Singapore listed Alliance Mineral Assets in return for funding development of the venture – with processing infrastructure previously established at Bald Hill for a tantalum mining venture. Tawana and Alliance executed offtake agreement in April for the supply of lithium concentrate over a five-year term with pricing for 2018 and 2019 of US$880/t (FOB Esperance) for 6% Li2O. Bald Hill is 50km south east of Kambalda. Shares in Tawana were up 8% to 39c in midday trade, capitalising the company at $172 million. The stock is up about 1800% from 18 months ago.
A unit of Jiangte Motor plans to buy 57 million shares in Australia-listed lithium miner, Tawana, for AUD20m ($15m) as it seeks to ensure lithium concentrate supply for a company in which it owns 50%. The deal is expected to close by the end of this year, with an initial cash injection from China National Nuclear Corporation (CNNC) and CNNC being used to fund construction on the project.