Alliance Mineral Assets Limited's (AMAL) mine in Western Australia has received government approvals for mining and processing to commence for both lithium and tantalum.
AMAL's joint-venture partner for the project, Tawana Resources, this week said the Bald Hill mine "now has all the necessary environmental approvals required to be one of Australia’s next lithium producers."
The lithium has a ready buyer -- and even an agreed price.
The JV has signed an offtake agreement with Hong Kong listco Burwill Holdings whereby Burwill will buy at least 200,000 tonnes of lithium concentrate at a fixed price in the first two years worth about US$200 million.
If the JV produces excess lithium concentrate, which is likely to be the case, Burwill has the first right of refusal to buy at the same offtake price for the first two years.
Drill rig at Bald Hill mine. Photo: Tawana ResourcesThe environmental approval was for the construction and operation of a 1.2Mtpa dense media separation plant (DMS).
The operation licence by the Department of Water and Environmental Regulation follows recent approval of the updated Environmental Mining Proposal by the Department of Mines and Petroleum.
Tawana Managing Director Mark Calderwood said: “Being permitted to develop and operate at the Bald Hill Mine is a significant achievement and milestone for the joint venture. I look forward to providing further updates at this exciting time for Tawana and AMAL as we transition from explorer to producer.”
| Milestones so far in 2017 | ||
| From a standing start about a year ago, both AMAL and Tawana have made rapid strides toward becoming the next -- ie fourth -- lithium producer in Australia. Below are the milestones achieved this year, during which their stock prices have gone up sharply in conjunction. There's, likely, significant potential upside as production nears, as resource estimates are raised after current extensive drilling is completed, and when an offtake agreement for tantalum from the mine is achieved. These are key near-term catalysts.
July: Second tranche of prepayment received from Burwill. July: Pre-Feasibility Studies: Results point to outstanding operating cashflows and high IRR. June: Maiden lithium mineral resource estimate April: Offtake agreement with Burwill Holdings for up to US$200 million of lithium concentrate over 2018-2019. First shipment: 1Q2018. March: Large scale metallurgical test work completed. |
See Tawana's full statement on approvals granted here.
