Tawana Resources’ stock has been struck off from the official list of Australian Securities Exchange after the company implemented the scheme of arrangement with Alliance Mineral late on Friday.
In the announcement dated 14 December 2018, Tawana Resources NL (ASX: TAW) told that its shareholders had been allotted 1.1 Alliance shares for every 1 Tawana share held at the record date of 7 December 2018. The arrangement relates to the acquisition of 100% of shares of Tawana Resources by ASX listed miner, Alliance Mineral Assets Limited (ASX: A40).
Further, it has been stated that some of the Alliance shares have been issued to sale agent which were required to be released to ineligible shareholders under the Scheme.
This implementation of Scheme comes after the Tawana’s shareholders gave their approval to the Scheme on 27 November 2018 followed by the approval of the Federal Court of Australia received on 3 December 2018.
Mark Turner, Non-Executive Chairman of Alliance Mineral stated that Tawana and Alliance are closely working together to commence production at Bald Hill Mine while taking the company through its next phase of growth.
For the period 12 March 2018 to 30 June 2018, the Bald Hill Mine produced a total of 19,218wmt (approximately 18,800dmt) of spodumene concentrate and 367wmt of tantalum pre-concentrate. A total of 9,012wmt (approximately 8,859dmt) of spodumene concentrate was sold under offtake agreements with Hong Kong-based Burwill Commodity Limited.
For the six-months ended 30 June 2018, Tawana Resources posted the consolidated loss of $7,253,000 compared to the loss of $5,078,000 as at 30 June 2017. This reflects the loss after income tax and is inclusive of $4,059,000 write-down of the Group’s non-core exploration assets to their fair value less costs to distribute.
Tawana Resources’ stock last closed at $0.310 on Friday, 14 December 2018. It was the last time that Tawana Resources shares have traded on ASX as it has been brought down from the official list of ASX with effect from today, 17 December 2018. However, the TAW stock has seen a negative performance change of 15.07% over the past one year.
The suspension of Tawana Resources’ stock is directly attributable to the acquisition of all the Tawana Resources’ shares by Alliance Minerals.
Since its listing on 5 December 2018, Alliance shares have been trading on a deferred settlement basis. It last closed at $0.270 on Friday, reflecting a negative daily price change of 15.625%. However, we can see A40 stock trading at normal settlement basis from today. In the early morning trade, it has gone up 1.852% to trade at $0.275 on 17 December 2018.
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