Tawana Resources NL intends to restructure its assets in a bid to focus on the company's flagship Bald Hill lithium-tantalum project in Western Australia.
The company said March 22 that it will spin out its Cowan and Yallari lithium projects in Western Australia and Mofe Creek iron ore project in Liberia to a wholly owned public company.
It will then conduct an in-specie distribution of 85% of all spinoff company shares to Tawana shareholders, while Tawana will retain a 15% interest in the newly created lithium and iron ore exploration focused company. The transaction remains subject to due diligence and securing shareholder approval.
Tawana recently started lithium concentrate production at the Bald Hill joint venture with Alliance Mineral Assets Ltd. and intends to focus on production ramp-up at the project.
The company is not seeking to list the new entity on the ASX at this time. However, the board of the new company will consider the prospect in due course.
Managing Director Mark Calderwood said the restructuring will better position the company and the spinout to advance their respective asset portfolios, which are at different stages of maturity, and will unlock better value for shareholders.
Tawana aims to complete the restructuring by June.