Kambalda lithium miner Tawana Resources has locked in $40 million worth of funding from Tribeca Investment Partners to stay listed as it completes its merger with Singaporean joint venture partner Alliance Mineral Assets Limited.
The funding comes in the form of a $20 million secured debt facility for a proposed upgrade to the processing plant at the Bald Hill joint venture project, for which metallurgy and engineering studies are nearing completion.
The additions are expected to increase the nominal throughput rate from the current 200 tonnes per hour to 300tph and increase recovery rates.
An additional $20 million line of credit will satisfy the ASX’s Emphasis of Matter Requirement to prove the merged entity’s ability to continue as a going concern after listing.
The rule exists to ensure newly merged entities can fund their activities without raising new capital.
It meant the company could have been left with a listing in Singapore but no exposure to the Australian market for domestic shareholders until it could list in Australia later.
Tawana managing director Mark Calderwood said the facility would increase balance sheet liquidity as the joint venture partners ramped up lithium production and advanced optimisation of the mine and the processing facilities.
“We also believe it paves the way towards an expeditious listing of Alliance on the ASX,” he said.
The $425 million merger is expected to be completed in November.
The companies expect to produce between 60,000 and 75,000 tonnes of lithium concentrate this half, having shipped 18,855t during July and August.
Tawana shares were up 5.5¢, or 22 per cent, to 30.5¢ at 10.50am.