Dual-listed Tawana Resources intends to restructure its assets in order to focus on its flagship Bald Hill Project.
The restructuring will involve the transfer of the Cowan, Yallari and Mofe Creek assets to a wholly-owned public company (SpinCo), before undertaking a capital reduction and distribution by way of in-specie distribution of 85% of all SpinCo shares to Tawana Resources’ shareholders.
The assets to be transferred to SpinCo will include:
- the 100% owned Cowan lithium project in Western Australia
- the 100% owned Yallari lithium project in Western Australia
- the 100% owned Mofe Creek iron ore project in Liberia
“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 from Tawana to form a new standalone exploration company,” states Tawana Resources MD, Mark Calderwood.
“Tawana Resources and SpinCo, will be better placed to advance their respective asset portfolios, which are at different stages of maturity. Demerging the prospective assets should unlock better value for SpinCo shareholders,” he adds.
The proposed transaction will create two distinct companies:
- Tawana Resources, with its existing board and management team focussed on production at the Bald Hill Project, positioned as a major supplier of quality lithium
- SpinCo, with the Cowan, Yallari and Mofe Creek assets as a lithium and iron ore
The Mofe Creek project is located within one of Liberia’s historic premier iron ore mining districts.
The project is 10 km along strike from the abandoned Bomi Hills mine, 80 km along strike from the historic Bong Mine, 45 km from the Mano River mine and 20 km from the Bea Mountain resource.
The project is characterised by exceptionally coarse grained, high-grade itabirite that has the potential to deliver a high-grade product (63%Fe – 68%Fe) at a coarse crush sizing, with high mass recoveries, and potentially low mine stripping ratios and free-dig material.
The project is exceptionally well-located being approximately 20 km from the coast for potential haul-road trucking or conveyor of product to the coast and transhipment via barge to deeper water for on-shipment or barging to the port of Monrovia.
Other possible infrastructure solutions exist: road or rail to the deep water port of Monrovia via a 80 km sealed road from the central licence area or a 65 km decommissioned standard-gauge iron ore railway alignment from the Bomi Hills mine to the port of Monrovia, 17 km east from the easternmost magnetic anomaly.
Proximity to the coast and positive initial metallurgical test-work results suggests the potential for an early start-up, low capital intensity project, with low operating costs.