Tawana shareholders approve merger with Alliance Mineral Assets
The deal is expected to be concluded as early as December 4, 2018.
The shareholders of JSE-listed Tawana Resources have approved a merger with Alliance Mineral Assets, the former company announced on Tuesday.
The company announced that 92.6 percent of shareholders had voted in favour of the merger at a scheme meeting held in Perth, Australia.
“We are extremely pleased that shareholders have voted overwhelmingly in favour of the merger, endorsing the board’s view that the merger represents an outstanding opportunity to elevate the merged group’s profile and to take the Bald Hill Mine through its next phase of growth,” Mark Calderwood (pictured), Tawana’s managing director, said in a statement on Tuesday.
“We look forward to progressing our strategy to become a long-term and sizeable producer of quality lithium concentrate underpinned by a resource with significant growth potential,” Mark added.
Tawana Resources is also listed on the Australian Securities Exchange (ASX).
In April 2018, Tawana and Alliance Mineral Assets announced their merger intentions to create a mid-tier lithium producer with a market capitalisation of A$446 million (R4.5 billion). Under the merger agreement, Alliance will acquire all the issued shares of Tawana for 1.10 Alliance shares for every Tawana share held.
The deal remains subject to the approval of the Federal Court of Australia, in which Tawana will seek the court’s approval of the deal at a hearing scheduled on December 3, 2018.
Once the court approves the deal, it is expected that Tawana shares will be suspended from trading on ASX and the JSE with effect from the close of trading on December 4, 2018.