Tawana Resources shares wobble as it updates proposed merger
On Tuesday, Tawana Resources’ share price initially jumped 12% to R4.50 before dropping 80c to R3.70 as the market digested an update on its proposed merger with Singapore-listed Alliance Mineral Assets. At R3.70, Tawana’s share price was 7.7% lower than Monday’s R4.01 closing price. In April, Tawan announced it intended to merge its Bald Hill lithium mine in Western Australia with Alliance, while unbundling its remaining "non-core" projects into a company provisionally called SpinCo. SpinCo will retain Tawana’s South African projects, along with its Liberian iron ore project Mofe Creek, and Western Australian lithium projects Cowan and Yallari. Tuesday’s statement said the Singapore Exchange (SGX) issued a "no objection" ruling to Alliance swapping 1.1 of its shares for every Tawana share. Tawana said following its merger with Alliance, its shares will trade on the Australian Securities Exchange (ASX) and SGX’s "Catalyst" board, with no mention of the JSE, where its listing will pr...
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