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 11.45%. Jiangte will own 50% of Tawana after the transaction.