Shareholders have given the Tawana Resources the go-ahead to acquire Lithco No 2, which will result in it becoming a joint venture partner of Alliance Mineral Assets in the Bald Hill lithium and tantalum project in western Australia, Tawana said on Friday.
The acquisition of Lithco would potentially allow Tawana to become an Australian spodumene producer in the second half of 2017.
Tawana, which has just completed a due diligence on the Bald Hill Mine, said on Tuesday that extensive spodumene pegmatites intercepted in wide-spaced drilling indicated significant tonnage potential, over and above existing tantalum reserves.
"The Bald Hill Mine represents a unique opportunity for the company to quickly enter the spodumene supply chain with modest capital expenditure at a time when demand is strongly outpacing uncommitted supply. Engineering in the new year will focus on fast-tracking completion of the feasibility focused on installation of a DMS [dense medium separation] circuit and rescheduling of the mine plan after a revised reserve estimate covering both lithium and tantalum," said Tawana MD Mark Calderwood.