TawanaResources NL said July 11 that it has acquired Mount Belches Pty.Ltd. in exchange for 40,000,000 of its shares.
Mount Belches owns five lithium prospective tenements in twoproject areas, Cowan and Yallari, in Western Australia.
Cowan comprises three granted exploration licenses totaling159 square kilometers and located southeast of Kambalda, while Yallari iscomprised of two exploration licenses totaling 100 square kilometers southeastof Coolgardie.
Tawana also appointed Mark Calderwood, Mount Belches' soledirector, as CEO.
The company is planning to undertake drilling in Septemberto test the known spodumene pegmatites and lithium geochemical anomalies in thetenements.
To fund the exploration programs, Tawana has receivedcommitments to raise nearly A$1.8 million by the issue of shares priced at 2.5cents each. The company will issue 19,600,000 shares under its 15% placementcapacity in the coming days and will issue a further 50,400,000 sharesfollowing shareholder approval.
All of Tawana's directors will participate in the placement,which will likewise require shareholder approval.
Shareholder approval will also be sought for the purchase ofMount Belches, the completion of which is required by Aug. 31.